HC Deb 07 May 2002 vol 385 c99W
34. Hugh Bayley

To ask the Secretary of State for Health what assessment he has made of the impact of rising property prices on the number of private nursing and residential care homes. [52805]

Jacqui Smith

The Department is funding the personal social services research unit to examine the reasons behind home closures. The most commonly cited cause was found to be business failure. Among the other factors identified was the high value of property, making it attractive for care home owners to cash in their investments.

As announced on 17 April by my right hon. Friend, the Chancellor of the Exchequer, we are increasing the resources for personal social services by an annual average of 6 per cent. in real terms from 2003–04 to 2005–06. Local authorities will be able to use these substantial extra resources to stabilise the care home market and to enable them to pay fair and realistic fee levels.

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