Supported Living: Social Housing Investment Opportunities
Social housing, also known as supported living, presents an opportunity for investors to collaborate with the UK government in its commitment to providing housing and care for the most vulnerable people in society. To increase the amount of housing available to these people in need, supported Living providers sign long leases on private residential properties, where the government funds 100% of the rent and care services. Social impact real estate, also known as social housing property investments, offers investors newly renovated freehold houses, accompanied by the aforementioned long-term lease contracts for stable rental income and managed maintenance from day one.
Freehold Houses
Full title deed and ownership of both the land and building from day 1.
Hassle-Free
Management is handled by the housing provider.
Instant Income
Your monthly income commences from day 1.
Affordable Investments
Our social housing investments start from just £120,000.
Inflation Linked
Your income index is tied to the Consumer Price Index (CPI).
For Ethical Investors
Help house the vulnerable and people who need support.
Fixed Income From Supported Living
Fixed income is the key benefit of social or supported living investments. The agreement signed between the housing association is a fully repairing and insuring lease for these houses. Therefore, you will never worry about void periods, maintenance bills, or tenant issues again. Due to the care requirements for tenants in social housing or supported living, the housing provider takes responsibility for the maintenance and upkeep of the property, as well as tenant management. The government funds the rent in full, providing you with a 25-year, hassle-free income.
Discover investment opportunities in supported living social housing with TKI Residential, focusing on social impact and providing ethical rental homes for vulnerable tenants.
Is investing in social housing for you?
Over 1.2 million households in the UK require social housing, with an average annual increase of 3%. The UK Government has set aside billions of pounds each year to support this cause. These accommodations are not only supported but also funded by the UK Government.
The government allocates an annual budget to the registered providers, which is typically paid in stages throughout the year. The size of the budget varies depending on the type of tenants that the housing association caters to. This commitment from the government ensures the stability and reliability of the investment, making it a secure and promising opportunity.
How Do Social Housing Investments Work?
The housing associations provide long-term rental contracts, typically ranging from 5-25 years, with the intention to extend after the initial period. These contracts, known as FRI leases, ensure that all repairs, maintenance, service charges, and other usual expenses are covered by the tenant, who is the housing provider. This not only provides you with a hassle-free income-generating asset but also allows you to make a significant social impact. By investing in social housing, you are contributing to the community and helping individuals and families in need.
The rents depend on the size of the property, location, and what service or care they provide, but on average, landlords will see between 8%—11% NET yields. The rents are reviewed annually in line with CPI, with the assurance of no void periods and no missed payments throughout the contract. This offers you a stress-free income, allowing you to do more important things like enjoy more time with your family.
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