ABSTRACT
Care homes provide care and accommodation to a wide variety of service users. The care sector is tightly regulated. While the aims and objectives of the legislation are the same throughout the United Kingdom, the Acts and regulations vary from one country to another. Under the Act, a care home cannot operate unless it is registered by the Commission for Social Care Inspection (CSCI). In addition to the CSCI initiative there are other quality schemes in existence including those operated by individual local authorities and Residential & Domiciliary Care Benchmarking (RDB) star rating. Local authorities as the dominant purchaser of care beds are in a powerful negotiating position with independent sector providers. Capital value is calculated using the income capitalisation approach assuming that the use as a care home is to continue and that care home use is the most valuable use of the property.
