Ballymoney: Court Care Home rooms 'were sold as investments'

The Court Care Home in Ballymoney has been ordered to close by the sector's regulator

Concerns have been raised that rooms in a County Antrim care home were being offered as buy-to-let investments.

The Court Care Home in Ballymoney has now been ordered to close by the Regulatory and Quality Improvement Authority (RQIA).

The funding model is not unlawful, but concerns have been raised about whether it is viable and ethical.

The closure means 27 residents will have to move and 50 staff members will lose their jobs by 15 October.

The RQIA said the invest-in-rooms scheme was part of wider concerns affecting the ongoing operation of The Court Care home.

In their notice of closure, the regulator said it had been made aware of a "scheme known as invest in rooms".

It also said there were concerns about the home's "financial viability".

"An internet search verified that rooms in the home were being offered to individual investors," the RQIA said.

"Further, from a review of land registry records it is apparent that individual leases have been granted in respect of various rooms to these investors."

'Profit over people'

BBC News NI has seen online advertisements for rooms at The Court Care Home, which has 40 rooms in total, offered as buy-to-let investments for between £71,950 and £75,000 each.

An online brochure assured buyers they would receive a 10% rental income every year for 25 years.

They were also offered the option to sell the unit back after five years at 110%.

The DUP's North Antrim MLA Mervyn Storey has written to Health Minister Robin Swann and the RQIA.

The DUP's Mervyn Storey said there needed to be clarity that the focus was on residents, not financial arrangements

"People need to have clarity that the primary focus of any healthcare setting is about the needs of the residents, not financial arrangements which are nothing to do with their place in that establishment," he said.

The RQIA said it was not aware of other homes being funded in the same way in Northern Ireland at present.

Mr Storey added: "When I spoke to the health minister, he was at pains to assure me that they weren't aware of it being employed in any other provisions in Northern Ireland, but we absolutely need to be sure.

"The onus needs to be on the Department of Health, the RQIA and us all collectively because we all have loved ones who are in provisions similar to this."

Alan Perry, from the GMB trade union, said the invest-in-rooms funding model "prioritises profit over people".

He also called on the RQIA to look into the financial arrangements behind care homes in Northern Ireland in greater detail.

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The Commissioner for Older People for Northern Ireland, Eddie Lynch, said he believed the selling of rooms to private investors was "converting the care of older people into a commodity".

"In the majority of cases, and certainly for many providers in Northern Ireland, there is a successful balance of good quality care for residents and modest profits.

"But we have seen what happens to care standards when profit is the main imperative for running a business."

Mr Lynch said he believes an invest-in-rooms scheme needs to be regulated by the Financial Conduct Authority, which it currently is not.

Different ownership and management

In its notice of closure, the RQIA also said there were issues around the ownership of the home and that the current registered provider - The Model Group NI - had "not been in meaningful control since January 2021".

The RQIA also said "commercial transactions were completed in respect of this home dating back to March 2020, with the intention that it would be carried on under the ownership and management of Court Care Home (Ireland) Ltd".

The Court Care Home (Ireland) Limited is believed to have been the company using the invest-in-rooms scheme as a funding model.

On the home's closure, the company's solicitor said: "Our client understands that this a distressing situation for those concerned, however, at this time, our client is unable to provide any further statement due to active litigation."

A spokesperson for the Model Group said they were continuing with the provision of care in The Court Care Home on a "transitional basis" while the Court Care Home (Ireland) Ltd applied to be registered.

"The RQIA recognise that the Model Group NI are not the owners of, nor in financial control of, The Court Care Home and are therefore not in a position to continue to operate the home" a spokesperson said.