The 11 residents of two Teignmouth learning disability care homes should not be affected by the financial troubles of the firm that owns them, senior managers have claimed.

Union leaders have their doubts, saying the company was on the brink.

Brynsworthy in Higher Woodway Road and Oakleigh House, Barnpark Road, are two of 29 homes in the south west operated by Southern Cross, Britain's largest operator.

This week, the care staff union GMB issued a statement in which it said Southern Cross had held talks with landlords about reducing the 'unsustainable' rents being charged.

It said 300 of the Southern Cross care homes were owned by the Qatari Investment Authority which also numbers Harrods among its interests.

Stuart Fegan, GMB organiser said: 'GMB welcome this meeting between Southern Cross and 20 of its landlords as a necessary step towards reducing the unsustainable rent burden.

'These landlords are overcharging for rents on the buildings to the tune of £60 per week per bed. GMB considers that all Southern Cross landlords have to cut the rents if the company is to be brought back from the brink and the threat to residents and staff lifted.'

The union has written to the Prime Minister seeking urgent talks on the matter claiming the British economy was losing out to the tune of £100 million each year as overseas landlords channelled profits into tax havens.

In a statement issued by Southern Cross to the stock exchange on April 14 it said: 'No decisions were made at this meeting but there is a general recognition of the value to all parties of moving forward to a solution in an orderly fashion.

'Southern Cross reaffirmed that the provision of care remains the priority for all parties and that the negotiation process has not, and will not, compromise the quality of care Southern Cross provides to its 31,000 residents.'

Staff at the two Teignmouth homes did not wish to comment.