MCCARTHY & Stone is taking over all the services provided in its “extra care” developments after ending its relationship with the not-for-profit provider Somerset Care.

The Bournemouth-based company said the “consensual conclusion” of the partnership was a “milestone” in the development of the business.

It said the move would help it roll out new services including smart technology, electric car clubs and an expanded care offering for all its 293 devleopments.

McCarthy & Stone, which dominates the retirement development market, said the move was a “significant milestone” in its “strategy to transition the business from a housebuilder to the UK’s leading developer, manager and owner of retirement communities”.

Care, domestic support and property management in the company’s 92 Retirement Living Plus developments – such as Horizons near Poole Park – is delivered by YourLife Management Services, in which McCarthy & Stone and Somerset Care were partners.

YourLife will now become a subsidiary of McCarthy & Stone.

The developer’s chief executive, John Tonkiss, said: “Our partnership with Somerset Care has been hugely successful and has made a profound difference to the quality of life of thousands of older people. It has helped us to become one of the largest operators in the housing with care sector and we deliver more new dwellings of this form of housing each year than any other organisation. We are also the largest private operator by far.

“We have developed considerable expertise in providing care and the long-term running of our developments and I would like to thank everyone at Somerset Care for being such an excellent organisation to work with.

“Now our care service is at significant scale and the partnership with Somerset Care has concluded, we have an exciting opportunity to develop the next generation of products and services in line with our new strategy. The growth of our care and service business is integral to this approach and it is essential that these services are delivered wholly by McCarthy & Stone. This announcement is a critical step towards our vision of creating even deeper and longer relationships with our customers.”

YourLife’s care services and most back office functions are already part of McCarthy & Stone and the company said there would be no reduction in services.

Gary Ridewood, chief financial officer and interim chief executive of Somerset Care, said: “During the nine years of the partnership, both our organisations have developed considerably, and this decision marks the beginning of a new phase for Somerset Care’s home care provision which continues to grow.”

Earlier this year, McCarthy & Stone revealed that profits had fallen by 66 per cent. It cited the costs of restructuring and redundancy after a change in strategy.