26 May 2026 · Policy

Incentives for care homes in new private developments made permanent

The Labour and Welfare Bureau has made permanent, from 20 June, the trial improvements to the scheme that lets developers build care homes in new private developments without paying land premium for them. The changes allow more and larger homes per site, to add care home places through the market.

• Permanent from 20 June 2026
• More than one qualifying home per site, up to 12,000 m² or 10% of the lease's maximum floor area, whichever is greater
• Qualifying care home floor area is not counted in the project's gross floor area
• Applications rose from 8 before the trial to 25 by end-March 2026
• Homes belong to the developer and set market fees

Our summary, in our own words. Read the full text in the government press release.