A new Innovative Finance ISA (IFISA) focused on specialist care home investments has launched in the UK, offering annual returns of up to 7 percent.

Brought to the market by The Barbican Group, the ethical ISA will support over 83 specialist healthcare properties in the UK that look after the most vulnerable.

The Barbican Group, which operates in healthcare, logistics and renewables and has current assets valued at over £105 million, will offer the Barbican ISA as a three-year bond, offering investors a fixed rate of interest of seven per cent tax-free per annum with no opening or management fees.

Funds in the ISA will go towards refurbishing existing care homes as well as enhancing the management and structure of the individual care home facilities.

“We are excited to offer UK investors the opportunity to enjoy a healthy rate of return on their savings whilst investing in an IFISA that will make a real difference to some of the most vulnerable people in the country.

“There is an alarming care home crisis in the UK, which is putting a strain on our NHS. At The Barbican Group, we have always been passionate about helping and supporting those people in society that need it the most,” The Barbican Group said.

The Barbican ISA is run by Northern Provident Investments and is both asset and property backed.

“Investing in The Barbican ISA will allow us to continue to improve the structure and quality of care within our care homes and give us the capacity to expand our portfolio of properties, refurbish existing homes and reach even more individuals.

“Our Innovative Finance ISA gives investors a refreshing alternative to many of the cash ISAs on the marketplace which have historically low interest rates.”

All of the care home properties are owned by the Group and are monitored and accredited by the UK Government CQC (Care Quality Commission) in order to provide outstanding care to local authorities and service users.