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News Release


JLL Healthcare responds to Panorama investigation into care firm council contract cancellations

​LONDON, 20 March 2017 - Commenting on Panorama’s investigation into care firms cancelling council contracts due to cost pressures, Phil Schmid, Director in JLL’s Healthcare team, said: “The widespread cancellation of council contracts by care firms is yet another demonstration of the state of emergency that the state funded social care system is in. In the Budget the government laid out plans to look at wholesale reform of how social care is funded and it is to be hoped that this will look at more radical measures such as removing stamp duty for downsizers and enabling equity release to better encourage investment in alternative accommodation for older people. There needs to be a realisation that there is simply not going to be enough public money to satisfy all the demands made on social care funds especially as people continue to live longer.

“Of course current bed shortages are leading to more pressure on NHS beds and if we carry on seeing this level of contract cancellation then there will of course be even less bed space. The situation 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.”