A recent report warned that, by 2040, the British elderly population in need of care will hit a critical 6 million.
The report was commissioned by the Department of Health and Social Care, and carried out by the London School of Economics, and York and Kent universities.
Britain’s elderly population is growing rapidly. In 25 years, the report projected that the number of those over 65 years of age will increase from 9.7 million to 14.9 million, a rise of more than half.
Those over 85 years of age are projected to rise even more rapidly, more than doubling from 1.3 million to 2.7 million.
Of the elderly population, those in need of care will shoot up to 5.9 million, an increase of almost 70% from the previous 3.5 million.
Report lead Raphael Wittenberg of the London School of Economics said: “Our projections of demand for social care show unless there is a substantial decline in disability rates in old age, the number of people needing care will rise greatly over the next 25 years.”
Public expenditure on social services is expected to balloon from £7.2 billion to £18.7 billion, which is more than two and a half times the amount spent in 2015.
The £9.4 billion in dedicated social care funding provided by the Department of Health and Social Care to local authorities over a three-year period, has been insufficient for the growing elderly population in need of care. Budget cuts have hit social care aid, and NHS figures showed those receiving help have fallen by 400,000 since 2010.
Barbara Keeley, Shadow Minister for Social Care said: “Councils who provide care are facing bankruptcy, nearly half a million fewer people are getting publicly funded care than in 2010 and over one million older people are going without any care at all.”
Ian Hudspeth, chairman of the Local Government Association’s Community Wellbeing Board said: “With people living longer, increases in costs and decreases in funding, adult social care is at breaking point.
“Adult social care services face a £3.5 billion funding gap by 2025 just to maintain existing standards of care. The likely consequences are more and more people being unable to get quality and reliable care and support,” he said.
The elderly that do not qualify for social care funding will have to pay out of their own pocket. Private expenditure is projected to rise from £6.3 billion in 2015 to £16.5 billion in 2040, an increase of 163%.
Yet, private care may not be that easy to obtain either. In May, CBRE reported that by 2021, there would be a shortfall of more than 148,000 beds at private care homes.
Currently, 85% of Britain’s care home stock is over 40 years old with half of the existing 480,000 care home beds not fit for purpose and 6,600 care homes at risk of closure over the next five years, due to poor condition.
For the elderly in need of care but are unable to obtain it, there is undue pressure on their family and friends to provide assistance for daily living. This is not sustainable — the fate of Britain’s elderly lies in whether the country can build enough care homes to ensure them a decent standard of living.
New-build care homes are currently being constructed across the country to meet this need. With low supply and high demand, this sector offers lucrative opportunities for investors, providing high returns at low risk.
Care homes from several developers like Qualia and Carlauren are packaged to be accessible to investors. There is no need for a large amount of capital, with investors being able to purchase as little as just an individual room, which has the additional benefit of falling below the stamp duty threshold for commercial property. This brings great returns due to the savings on duty.
An investment in care homes goes beyond monetary gain, and provides a practical benefit for society — specifically the British elderly population in need of care.
Virata Thaivasigamony of CSI Properties knows this. He says: “What the elderly care homes investment extends to the investor — above other investments — is the fulfilment of having done something for the good of others. Yes, it is undoubtedly a profitable venture, but it is also an investment that adds value to society and truly makes a difference.”
This weekend in Singapore at the Hilton Hotel (Thailand & Singapore Room Level 5), attend the launch of Bayview, a UK care home in Morecambe Bay. Meet Carlauren CEO Sean Murray and find out how you can get 10% rental returns assured for 10 years, starting from a capital of £85,950!
What are your thoughts about the elderly care crisis the UK is facing? Drop us a comment below. If you are interested to invest in UK Care Homes with the potential for high returns while making a difference, don’t hesitate to give us a call at (+65) 3163 8343 (Singapore), 03-2162 2260 (Malaysia), or email us at email@example.com!
By Ian Choong Edited by Vivienne Pal
- Featured Image: Orchid Care