A care home provider has begun talks to transfer all of its supported housing schemes to new ownership.

Rapport Housing and Care was found by the Regulator for Social Housing to have serious financial issues and an inability to manage its affairs appropriately on March 31.

As a result, the provider is in talks with Town & Country Housing to takeover the operations at Watling Court in Gravesend, Lawson House in Larkfield, Meadow View Court Wateringbury and Rosewell House Tonbridge – with its supplementary support housing service at Margaret Fisher House in Paddock Wood also being transferred.

Residents of these supported housing schemes were invited to a video call with the chief executive of Rapport, Leon Steer, who explained the situation and what will happen next.

He said: “It’s with a heavy heart I must tell you that Rapport Housing and Care is planning to transfer all services and supported schemes to the registered provider Town & Country.

“They are a trusted provider in the county, and we are confident that with our shared values and their commitment to providing great homes for the communities they serve, they will run the schemes to a high standard.

“Our residents and staff remain our highest priority and we are working closely with the team at Town & Country Housing to ensure a seamless transition as we complete the transfer.”

He went on to explain how the provider’s reliance on agency workers and the increasing cost of their services, combined with challenges since the pandemic and the cost-of-living increase, had brewed the perfect storm for its unsustainability.

The company had already started feeling the strain in October last year, when it announced three of its care homes in Northfleet, Gravesend and Canterbury would be shutting due to a ‘staffing crisis’.

Regulators were informed of the issues in January. A review into Rapport’s governance took place and it not only found serious concerns with its financial affairs but also evidence of service mismanagement, so a regulatory notice was issued.

It read: “Rapport has failed to demonstrate that it has an appropriate, robust and prudent risk and control framework in place. and has failed to assess, manage, and address risks to ensure its long-term viability.

“This lack of effective board oversight and management of its key risks is a fundamental failure of governance.

“As a result, the regulator has concluded that the Rapport board has not been able to demonstrate that it is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight.”

The provider is hoping to wrap up the transfer process by May 31 and has assured all current residents will not be affected by the process.

Bob Heapy, chief executive of Town & Country Housing, said: “We understand the pressures that Rapport has faced and will offer residents the support and security they deserve.

“Rapport has created strong vibrant communities across the sites, and we look forward to welcoming the residents and staff to Town & Country Housing.”

The care homes at Barnes House in Tonbridge and Rogers House in Wigmore will continue to be run by Rapport.