Make a Difference by investing in
Social Housing
The Facts
With over 1 million households currently awaiting social housing, the disparity between demand and supply is evident. Last year, while 29,000 social homes were either sold or demolished, less than 7,000 were built.
In England, the decline in social housing availability is stark, with 1.4 million fewer households accommodated compared to 1980. Consequently, a significant portion of the population has been forced into the private rental sector, which has experienced more than a twofold increase over the same period.
The UK Government’s expenditure of approximately £1.7 billion annually on emergency accommodation for those facing housing instability underscores the severity of the situation
Rent 2 Rent Secure Leases
The Social Housing Investments we engage in typically involve long-term leases ranging from five to ten years. These leases are established with government-backed entities or charitable organizations, ensuring stability and security. Under these agreements, the property is fully managed and maintained, eliminating any concerns regarding vacancies and providing predictable income streams. Importantly, we do not directly engage with council tenants; instead, the process is fully managed once the lease agreement is finalized.
The Benifits of Investing
Social housing encompasses various forms of accommodation catering to individuals in need, including those with low incomes, disabilities, homelessness, fleeing domestic abuse, asylum seekers, and other vulnerable groups requiring safe and secure housing. According to latest market data, social housing investment represents the largest segment of a £6.4 billion social impact investment market. Private investment in this sector has been steadily increasing, identified as a potential area for future growth
This upward investment trajectory is fueled by both the pressing need to bridge the gap between demand and supply of social housing and the attractive qualities it presents to property investors. Typically, rent in social housing is supported by government schemes, with voids often covered by housing associations. Tenancy agreements are established with organizations like charities or care providers rather than individual occupants, resembling commercial real estate contracts with provisions for repairs, maintenance, and longer lease terms. Additionally, investing in social housing allows investors to generate meaningful impact with their capital while still enjoying favorable yields and stable income streams
