Why do residential homes have to abide by the data protection act 1998?

The act requires that data not be disclosed to other parties without the consent of the individual whom it is about, unless there is legislation or other overriding legitimate reason to share the information (for example, the prevention or detection of crime). Even residential homes may wind up in possession of personal data that technically belongs to someone else. Even if they grant you the right to have some of their information, that does not grant you the right to share it. Also note that a lot of business is conducted from residential homes and home businesses are under the same rules in this regard as those operating out of an office in a commercial building.