How are Care Home Investments Regulated?

How are Care Home Investments Regulated?

If you are researching the care home sector to determine whether purchasing a care home unit is right for you then, like us, you will take comfort in the knowledge that it is a highly regulated area.

Care home providers, residential homes or nursing homes, must demonstrate compliance with extensive and rigorous regulations in order to register and operate their care business. As part of the application process the care home operator must provide evidence that shows they will be able to provide care that meets the government standards.

The Care Quality Commission (CQC) in England and the Care Inspectorate Wales (CIW) in Wales are the independent regulators of health and social care. Their objectives are to ensure that people have access to safe, caring, effective, responsive and well-led care services. They monitor, inspect and regulate these services to make sure that they meet fundamental standards of quality and safety. The CQC and CIW publish what they find and give each care home provider performance ratings. This transparency gives investors peace of mind that the care home of interest is being managed well and the residents are happy. All the care homes we have available for investment have their latest inspection reports available to download on the official CQC and CIW websites.  

Key questions asked by the regulators of care providers

There are five key questions asked by the CQC of care providers. They are often referred to as Key Lines of Enquiry (KLOEs):

  1. Are they safe? – The clients are protected from abuse and avoidable harm
  2. Are they effective? – The care, treatment and support leads to good outcomes and they help clients to maintain quality of life.
  3. Are they caring? – Staff involve and treat the clients with compassion, kindness, dignity and respect
  4. Are they responsive to people’s needs? – Services are organised so that they meet clients’ needs.
  5. Are they well led? – Leadership, management and governance of the organisation should all make sure it is providing high-quality care that is based around individual needs, encourages learning and innovation, and that it promotes an open and fair culture.

What are the benefits of regulation in the care home industry?

  • Care home providers must show evidence of their ability to run a care home service and comply with government standards to maintain their registration. By government standards we mean regulations made under the Health and Social Care Act 2008.  This makes it very difficult for rogue service providers to operate in the sector.
  • Regular independent inspections are conducted to give peace of mind that the care home is being run to a high standard. These inspection reports are in the public domain and available for download.
  • Care home providers are also monitored outside of inspections. This information comes from the public, the local authority, complaints ombudsman, the care staff which is known as whistleblowing and the service provider themselves as they are required to inform the regulatory bodies when certain things happen.   
  • If the care home is not meeting the required standards these failings can be identified and rectified with an action plan put in place to improve standards.
  • All carers must go through a strict recruitment process and receive ongoing training

The care home provider we work with operate 14 care home facilities across England and Wales which are all rated as ‘GOOD’.  The care homes in Wales are currently operating at 97% occupancy and they attract both local authority and self-funded clients. The care services provided include old age, Alzheimer’s, dementia, physical disability and cancer care.

If you are interested in learning more about the impact of CQC and CIW regulation in the UK care sector then call a member of our team today on 020 3875 0837 or email

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