Wandsworth is selling off an old people's home and neighbouring sheltered housing to a company that will then build new homes for elderly people.

Wandsworth Council's executive is expected to agree to sell off the site of former sheltered housing in Arabella Drive for just a pound to the Richmond Churches Housing Trust (RCHT).

It will also sell neighbouring Chestnut Lodge old people's home for a yet to be agreed amount. RCHT will then build a 45-bed residential care home and a new sheltered housing scheme there.

Chestnut Lodge residents will be consulted and moved into the new home when it is finished. RCHT will run it and the council will draw up an agreement to keep 30 of the beds for Wandsworth residents at a weekly fee of £430 per bed.

RCHT already runs Chestnut Lodge for the council, but the changes mean it will also own the freehold of the land. RCHT is worried the current home would not meet stringent new national standards, but promises the new home will have all mod cons, including en-suite bathrooms.

The sheltered housing would be for elderly residents with high care needs.

Wednesday's meeting of the care services overview and scrutiny committee heard that the closure of old people's homes has meant the loss of 111 beds in the past two years and if Chestnut Lodge were to close as well it would make a bad situation even worse.

"Chestnut Lodge needs major investment if it is to meet the latest standards of residential care. All parties agree that the money would be better invested in providing new, purpose-designed accommodation," said cabinet member for care services Councillor Jan Leigh.

"The new sheltered development will also meet a growing need for those who are not frail enough for residential care but who need more personal support than can be provided in conventional sheltered housing."

Labour spokesman, Councillor Pam Tatlow, said the Labour group will listen to all the arguments but prefers the council to retain its assets rather than sell them off.

"We should be thankful for small mercies they're not selling the land off to a private developer, but in the long run they're getting rid of a valuable asset that the council could control."

The proposals will next be considered by the housing overview and scrutiny committee on November 20.

If the plans go ahead the new care home could be finished by 2004 with the sheltered housing ready two years later.

November 16, 2001 12:01