What is a care home investment claim?

Care home room investment schemes sold individual rooms promising 8–12% annual returns. In August 2023, the UK High Court ruled Qualia Care Group's scheme was an illegal unauthorised collective investment scheme; 380 investors lost £57 million. Source: FCA High Court ruling August 2023.

Care Home Rooms

Care Home Room Investment Mis-selling — Were You Sold an Illegal Collective Investment Scheme?

The August 2023 High Court ruling against Qualia Care set the precedent: care home room schemes were illegal collective investments. If you invested, you may have a claim.

Check My Claim — Free Do I Qualify?

£57m

Lost by 380 Qualia investors (FCA, 2023)

£85,000

Maximum FSCS compensation per claim

No Win

No Fee — pay only if you win

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Do I Have a Claim?

Signs Your Care Home Investment Was Mis-sold

You may have a strong case if any of the following apply:

You invested in a care home room, care home 'bed', or similar fractional care home product
You were promised a fixed rental yield (typically 8–12% per year)
You were told you 'owned' a specific room or unit
Returns have stopped, reduced, or the care home is in administration
You were advised to invest by an FCA-regulated financial adviser
The investment was held within a SIPP or personal pension
You were promised a buy-back option after a set period
You did not visit or independently value the property

What Happened

From around 2012 to 2020, dozens of promoters sold individual care home 'rooms' or 'beds' to retail investors as property investments, typically promising rental yields of 8–12% per year and projected capital growth. Investors were told they owned a specific room within a care home and would receive rental income from its occupant. In reality, many of these schemes operated as unlicensed collective investment schemes — a form of investment that requires FCA authorisation. The High Court confirmed this in a landmark August 2023 ruling against Qualia Care Group, finding that the scheme was an unauthorised collective investment scheme and that its director, Robin Forster, made false and misleading statements to investors.

Why You May Be Owed Compensation

The FCA brought civil proceedings against Qualia Care Group and its director Robin Forster. In August 2023, the High Court found entirely in the FCA's favour: the scheme was illegal, the statements made to investors were false, and the promoter was ordered to pay compensation. This landmark ruling now applies as a precedent to similar care home room and hotel room investment schemes. Where a regulated adviser or SIPP operator facilitated the purchase — particularly inside a pension — they had duties of suitability and due diligence under FCA rules that were typically breached.

Who Is Liable?

Depending on your situation, you may have a claim against:

FCA-regulated adviser — IFAs who recommended the investment — particularly into a SIPP — breached suitability and due diligence duties.
SIPP operator — Operators that accepted care home rooms as pension assets had 'gatekeeper' duties under the Berkeley Burke line of cases.
FSCS — Where the regulated firm has failed, the FSCS covers eligible claims up to £85,000.

Recent Care Home Rooms Cases

Qualia Care Group (August 2023)

High Court ruled the scheme was an unauthorised collective investment scheme; director Robin Forster made false statements to 380 investors who lost £57m.

Carlauren Group

Collapsed 2019. Many investors have successful claims against SIPP operators and the FSCS.

MBI / similar room schemes

Multiple operator failures; claims typically pursued against advisers and SIPP operators rather than the insolvent promoter.

How to Claim

1. Free Claim Check

Tell us about your investment in 60 seconds. We confirm if you have a claim.

2. We Investigate

We gather the evidence, file with the FOS, FSCS or adviser. No paperwork for you.

3. You Get Paid

Compensation paid directly. No Win, No Fee — we only charge if you win.

Care Home Rooms – Frequently Asked Questions

My room is still 'mine' — do I have a claim?

Yes. Owning an illiquid, non-income-producing asset is itself the loss. We claim the difference between what you paid and the realistic resale value.

Who is liable — the operator or the adviser?

Usually the regulated adviser, SIPP operator, or both. The unregulated operator is rarely worth pursuing once insolvent.

I bought through a SIPP — does that matter?

It strengthens your claim because the SIPP operator had due diligence duties that were typically not met.

Does the Qualia ruling apply to my scheme?

The August 2023 High Court ruling is a precedent for similar care home room and hotel room schemes structured as fractional 'ownership' with pooled management.

Will my pension be restored?

Compensation is paid in cash and can be reinvested into a mainstream pension.

Is there a time limit?

Yes — six years from advice or three from awareness of loss. Don't delay.