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News Release

London

Housing equity should be unlocked to save social care system says JLL


​London, 15th December 2016 - Commenting on today’s announcements on care funding plans by Communities Secretary Sajid Javid, Phil Hall Chairman of JLL’s Healthcare team, said: “A rise in council tax may be a much needed recognition of the strains on the health and social care system but it will be felt unequally across the country and is a non-mandatory measure. Areas most in need will not be able to increase their funding by as much as those in the south heightening inequality and perpetuating the postcode lottery of care provision.

“Without a long-term funding solution and structural reform, there is a risk of this simply ‘kicking the can down the road’ as demographic pressures will likely produce further challenges over the next few years. This has been recognised by Simon Stevens, head of NHS England. The Social Care Precept and Better Care Fund are simply plasters which will be unable to provide a long term sustainable solution to the social care funding gap.

“It is time we recognised that there is simply not going to be enough public money to satisfy all the demands made on social care funds. Endless Government reports and commissions over the last twenty years have sought to avoid this conclusion and have come to nought.

“Our research shows that almost 80% of the over 65 population will be classified as being within mid and high end affluence by 2025, largely from rising levels of housing equity. Those who can afford to fund their care from housing wealth should be encouraged and rewarded to do so. This may not be politically popular, but could be the only way that the system is made more sustainable.

“The government’s inaction does create an enormous opportunity for investors and operators to fill the significant void for a mid-tier of care home provision aimed at those excluded from public pay and the South East focussed prime market.”