Magnolia House, in Leamington Spa, which houses 22 elderly people, was forced to shut on Friday due to a lack of funds.

The owner Dr Gurmit Singh said he was unable to keep it open after an application to extend the building was turned down by Warwick District Council.

He said hopes had been pinned on a final reprieve from the council, but without upgrading the facilities it could no longer run at a loss.

Sandra Coombes, acting manager of the home, said they had done all they could to try and save the home.

All the home's residents have found alternative accommodation.