Two people were arrested last year after allegations were made over treatment at Latimer Grange Care Home in Station Road.
That investigation is ongoing but the county council has ended its contract with the home and is withdrawing residents who live there because of a number of concerns.
A Northamptonshire County Council spokesman said: “The police investigation into safeguarding issues at Latimer Grange care home is still ongoing.
“However, due to ongoing concerns in relation to the management of the home and the home’s inability to meet the needs of residents without significant input from the council, we have taken the decision to end the council’s contract with Latimer Grange.
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“The Care Quality Commission (CQC) has been informed of this decision and is fully supportive of the decision taken by the council and the ongoing support offered to Latimer Grange over the past few months.
“This has ensured the continued safety of current residents at the home.”
It is understood that 25 people currently live there, 22 of whom are funded by the county council.
All residents are expected to be re-homed within the next four weeks.
The council spokesman added: “Staff from the council will now work with residents and their families to find suitable, alternative accommodation.
“We are working closely with the residents and their families as part of this process and will aim to relocate friendship groups together where possible.
“We expect all residents to be in their new homes within the next four weeks.
“In the interim, the council will take over the management of the home during the notice period and will continue to support residents and staff to maintain services that are safe and meet the needs of all residents.”
One relative of a man who currently lives there, who did not wish to be named, said he had no complaints over the care he had seen at the care home but that the decision ‘would break people’.
He said: “As far as we are concerned they are not closing a home, they’re breaking people up.
“It’s not easy to find somewhere and to move some of these at their age will break them.
“They’re not going to be strong enough to stand a move like that.
“We have had no problems with the care whatsoever.”
A third person has also since been arrested by police after the allegations last year.
This morning (Wednesday) a police spokesman confirmed an 82-year-old man, a 51-year-old woman and a 66-year-old woman are on conditional bail pending a charging decision from the CPS.
Latimer Grange Care Home and the CQC have been contacted for a comment.