Now is the time to go into the care business, according to a review of market growth in Essex over the past 12 months.

Running an old people's home or a children's nursery could offer a 30 per cent return on turnover, reveal Christie's, the East Anglian valuers and agents.

Tim Gooding, of Christie's, said: "Essex is particulary attractive as far as East Anglia is concerned because of its population density.

"The more potential customers there are - the bigger the growth prospects for a business like this."

He attributed the growth in the elderly and child care sectors to pressure on places.

He said: "People are living longer and need accommodation as they grow older. In the nursery sector, the Government has made it clear it wants to expand places to enable parents to go out to work.

"This creates a heavy demand for places and encourages people to start such businesses."

The wider care sector showed the biggest rise in business value during 2004 up 17 per cent. Hotels were up 10.9 per cent and pubs grew by 9.2 per cent.

Mr Gooding said the main driving force for the growth was a shortage of properties and a surplus of buyers.

He said: "People have been looking for places to put their money. These sectors have been so attractive they have become a target for investors."

There had also been a trend of acquisition by people cashing-in on the high value of their homes.

He rejected suggestons a slump in house prices would be reflected in the business sector, adding: "If homes were to fall by 20 per cent in value as predicted in some quarters, business values would fall only by 8.7 per cent based on analysis of the last 29 years."

Published Monday February 14, 2005

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