A purpose-built complex for the elderly in Ledbury is costing Herefordshire Council £3,000 a week as well as having accumulated £240,000 in other costs – while almost half of the accommodation remains empty.
Leadon Bank, which includes 35 rented extra care flats, 10 residential beds for rehabilitation cases, 20 daycare places, 17 flats for private sale, a restaurant, laundry and treatment rooms, opened last December on the site of a former care home in the town’s Orchard Lane.
It was assumed at the time that much of the development would be fully utilised, but “this has not proved to be the case”, says a report to the council’s watchdog adult social care and strategic housing scrutiny committee.
The length of time taken by potential residents and families to inspect and consider moving to the site, and the Christmas opening, combined to make it “a much slower process to fill the rented units than had been planned”, with 19 of 35 now occupied. The report warns “it could be towards the end of 2008 before all the flats are occupied”.
The financial risk of empty flats is borne by Shaw Homes, who assess their loss of income at about £154,000, with savings expected for the council by reducing the number of people needing residential care as Leadon Bank places are taken up.
But the council is also committed to pay for services even if they are not fully utilised – currently about £3,000 a week – as well as paying financing charges and a charge of £236 per extra care flat per week from December 21 last year – about £240,000 to date.
With some understatement, the report says that “as a result the council is not yet deriving full value for money from this resource”.
Now the rehab unit is being used for people prepared to consider moving on site, the catchment area has been widened. Individuals unsuccessful in getting into the Rose Garden complex are being approached, and the facility is being offered to a small number of people below the lower age limit of 55 who would benefit from extra care.
Another option is for Shaw Homes to let some units directly at market rent – considered unlikely – or the sale or transfer of the freehold of Leadon Bank to a Registered Social Landlord, which could reduce rents and capital charges to the council.
