A contingency plan has been put in place to reassure elderly residents whose care homes are under threat.

Southern Cross Care Homes, who have three residential care homes in Croydon, announced it was to close last week after landlords refused to restructure rental agreements.

Residents of Oban, Elmwood and Clarendon care homes and their relatives, have been reassured by both Croydon Council and the NHS their service will continue as normal.

A spokeswoman from Clarendon Nursing Home, Thornton Heath, said: “All we have been told is that we are still operational and are carrying on with business as usual.”

So far the landlords of 250 homes have agreed to take back their properties and run them themselves, but negotiations are ongoing with the owners of the remaining 502 homes.

A spokesman for Croydon Council, said: “We are seeking reassurances about Croydon residents. Our previous position remains the same; the needs of the individual residents remain paramount.

"We will take the actions necessary to ensure the well-being of older people who are the responsibility of the council presently living in the care of Southern Cross.”

An NHS spokeswoman said all clients had undergone a recent review and risk assessment.

She said: "We can confirm that all clients have had a recent review and risk assessment. All patients are able to be safely transferred to other homes in the event that we need to consider alternative provision for them.

"We are committed to ensuring our patients continue to receive good quality care in the future.”