The UK’s Care Quality Commission (CQC) has warned Springfield Care Home in Walthamstow, east London, that it must take immediate action to improve services.
CQC said that the home was found lacking in respecting and involving residents, safeguarding people, safety and suitability of premises, staffing, and assessing and monitoring the quality of service provision.
The conditions in the home had been designed to limit behaviour, leading to deprivation of comfort and dignity, according to the commission.
It found that the home did not meet emotional and social needs and the safeguarding training was not up-to-date for some staff working there.
CQC also stated that the home failed to provide safe and accessible surroundings that promoted wellbeing, and was insufficiently staffed.
By law, providers of care services must ensure that they meet all the essential standards, CQC officials said.
CQC deputy director Matthew Trainer said that the situation was alarming and should not be allowed to continue.
"While our inspectors found that physical health needs were being met at the home, emotional, social and psychological needs were not," he said.
"When a home cannot provide sufficient support to people living there, the answer must be to increase staffing rather than putting restrictions on residents that lower their quality of life," he added. "We have asked Springfield Care Home to send us an action plan showing how they will comply with the standards and will follow up on this."