The first phase of expansion by Orchard Care Homes of Leeds, will be a residential care and dementia care home in Cookridge, north Leeds, for almost 100 people. More care homes in south Leeds, Scarborough, Grimsby and Lofthouse are to open next year.

Orchard already runs more than 30 care homes and chief executive Paul Mancey said the number of people needing long term care will increase by 50 per cent by 2026.

Orchard, with its headquarters in Thorpe Park, is the fastest-growing business of its kind in Britain.

Chief executive Paul Mancey said the need for residential care homes was on the increase. He said: "Everyone is aware of the ageing population but we are also seeing a significant increase in dementia."

"The number of care beds has actually fallen in the last ten years as many local authorities are closing down their own homes.

"The average quality of care homes in Britain is not good enough. Less than ten per cent of all care homes achieve the minimum standards set in 2000 that detail the minimum requirements for a new home to gain registration."

The £10 million Cookridge home has en-suite shower rooms, flat screen television, DVD player and mini fridge in every room. It has separate quiet lounges, a hairdressing salon and sensory gardens designed to fit guidelines recommended by the Alzheimer's Society.