ELDERLY residents of a care home face losing their homes in the New Year over an increased rent demand.

Last week it emerged that Southmoor House residential home would close in February after a long-running row with its owners, St John’s College, over the terms of its lease.

The care home in Faringdon Road, Southmoor, has been running for more than 50 years and 24 residents face eviction. Negotiations between managers and St John’s College have reached deadlock, meaning the care home, which employs 20 staff, will close on February 4.

Managers at Southmoor House declined to reveal the level of the proposed rent increase but said it was substantial. Staff are working with families and Oxfordshire County Council’s social services in a bid to re-house the residents by the closure deadline.

Care home manager Sophia Rundle said: “We have been trying to talk about it. Unfortunately, they don’t seem to be able to get our view that we cannot afford the proposed rent increase. This means the closure of the home and 24 people being re-homed, which is the worse possible thing. I haven’t got the words to say how it feels.

“My staff are distraught by the situation — we are all beside ourselves because all the staff are going to have to look for new jobs. There is no good time, I know.

“Initially we didn’t see any issue with the rent — this has come as a huge blow to us.”

In 2007, the care home agreed to buy the freehold from St John’s, but the deal was put on hold because of “tax implications and economic circumstances”.

Earlier this year, the two parties entered into fresh negotiations over an extension to the lease, but they were unable to reach an agreement over its valuation.

Ms Rundle said: “If you look at a modern care home market expectations now are a lot more than they were 20 to 30 years ago.

“You have to bring standards up and have to be able to do that in the future.

“If we were to agree to such rents the college was looking at, we would be left with no profit margin to be able to go forward. If we sign to a lease that we were going to take on for 15 years and cannot raise standards then we would be in dire straits.”

Professor Andrew Parker, principal bursar at St John’s, said: “The increase in commercial rents is one factor, but the costs of complying with the necessary regulations for running a nursing home have also risen sharply.

“The college regrets the loss of any business tenant but, as a charity, has a duty and legal responsibility to make best use of its assets to support its programmes of education and research.”