A sheltered house in Ivybridge is to close due to financial difficulties, prompting concerns about the future of its residents.

The Abbeyfield Living Society (ALS) charity this week said Abbeyfield House would close as it was “no longer financially sustainable”.

ALS cited the impact of the Covid pandemic, staffing shortages, the increase in energy prices, rising inflation and “rapidly increasing operating costs” for the decision.

The facilities, located on Trehill Road, comprise 14 one-bedroom studios, a one bedroom flat and a two-bedroom bungalow. Residents pay from £1,371 a month for accommodation, which includes meals, utility bills and household maintenance.

In a statement, ALS said it had looked into the long-term future of Ivybridge following an extensive independent review and concluded that Ivybridge “was no longer financially sustainable over the coming five years”.

It said: “Significant investment is required to meet the standards expected by prospective residents and regulators, now and in the future, and the costs to carry out this work, even if spread over an extended period, are too great for us to meet.”

ALS added that it had consulted with residents, families and staff as well as organisations about possible options, but despite having “in-depth discussions” with another provider regarding the potential transfer of the home, it had been unable to find a buyer.

“We were not able to get the necessary assurances required for our Board to satisfy the regulator and make a decision to transfer the residents, staff and home to the organisation we have been in discussions with,” the charity revealed.

ALS said it was holding “one-to-one meetings” with residents to discuss the closure process and had been providing additional support.

“We will be doing everything we can to ensure that the closure and moving process runs as smoothly as possible for our residents,” the statement added.

A spokesperson for ALS was unable to say when Abbeyfield House would close or how many residents were currently staying at the sheltered home.

It has also emerged that the closure is one of seven being lined up by ALS in the South West. Four are in Cornwall and two in Plymouth.