MPS: Extra care housing

Market opportunities summary

We want to work with providers who can:

facilitate the design and construction of extra care housing (ECH) in areas of need
secure a significant proportion of the funding to finance the construction and operation of ECH – including the servicing of any debt
operate ECH and provide or arrange facilities management services
provide or arrange core care services
provide or arrange personal care and support services
engage with communities and partner with other services.

To encourage market development, we have a capital funding programme to invest in the design and build phase of schemes.

Providers are encouraged to contact us to discuss potential developments in any of the areas of unmet need set out in the table above. Priority areas for extra care development are Exeter, Exmouth, Teignmouth, Sidmouth, Tavistock, Axminster, Honiton, Ilfracombe.

We will provide revenue funding to ECH schemes to meet the personal care and support needs of any residents who meet Care Act eligibility criteria. Personal care services are delivered on a domiciliary care basis and are regulated by the Care Quality Commission. ECH residents are living in their own home so are eligible to receive welfare benefits and any personal income or pensions they are entitled to; meaning they pay directly for their own accommodation and living costs.

Operators of extra care housing are usually Registered Providers; regulated by Homes England. Several Registered Providers develop and operate extra care housing schemes. The challenge to set affordable target rents and service charges means that Registered Providers increasingly wish to develop larger scale developments in more urban areas, making schemes in smaller market towns increasingly difficult to deliver. The provision of extra care housing is becoming an increasingly specialist area of the housing market

The domiciliary care provision within extra care housing relies upon effective and sufficient personal care provision, our approach to which is described elsewhere in this Market Position Statement.

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Last updated: 09/10/2020