Investing In Social Housing UK
Government-backed social housing contracts with high yields and long 5 to 10 year leases.
- Completely hands off & hassle-free
- Government backed contracts
- Fantastic yields
- Multi package options
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Large discounts on property
Completely transparent
Tailored investment opportunities
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The Property Sourcing Company specialises in sourcing and securing Social Housing Opportunities for investors. We have established relationships with trusted social housing providers, ensuring access to off-market opportunities with preferential lease terms and enhanced rent guarantees.
Our Government backed social housing investments present a unique opportunity combining financial security, hands-off management and positive social impact.
The Property Sourcing Company’s expertise and established relationships with housing providers streamline the acquisition process, making social housing opportunities an attractive option for investors seeking a reliable and socially conscious investment. You can read more about how our social housing investments work here.
What are social housing investments?
A social housing investment is part of a premium investment package that we offer, which generates a stable return in regard to rental income as well as attractive lease terms – this is a lease put in place to help accommodate vulnerable individuals.
These properties are commonly referred to as Social Housing Investments, and our particular opportunities are backed by Government contracts and managed by established social housing providers, which provides that security and reliability of the investment.
If you invest in social housing you can take solice in the fact that you will be helping provide essential housing and support for vulnerable individuals, giving them the opportunity to integrate into society, rebuild their lives, and reduce reliance on public services.
On top of that, these properties offer attractive rental yields, long lease terms, guaranteed rent and hands-off management for the landlord.
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Start investing in Government-backed social housing today!
Secure your financial future with The Property Sourcing Companies’ Social Housing Investments with a truly passive investment. Enjoy a guaranteed rent lease with no void periods, all maintenance covered, and attractive returns of 8.5%+.
Our CEO and Founder, Jonathan Christie said “As the UK’s leading property solutions company, we have gained the trust of some of the country’s leading social housing providers and managed to agree enhanced terms on our Supported Housing investments.”
“We are able to therefore offer our STO customers hands off, long lease guaranteed rent and fully repairing property investments from a trusted and recognised brand, The Property Sourcing Company.”
“We do the hard work so you don’t have to. Sit back and watch the rent roll in.”
Are social housing investments right for you?
Are social housing investments good? Well, here at The Property Sourcing Company, transparency is our top priority.
Being completely up front and honest, these properties are do not work for all investors. They are different from your standard Buy To Let or Flip investments, so you will need to ensure that they align with your goals.
View them almost as a business, they provide that long-term stability with reliable returns. There best suited to investors who are:
- Socially conscious: If you are seeking to contribute to providing a solution for housing vulnerable individuals, while generating a financial return.
- Hands-off: These investments are completely hands off – there is minimal to no management responsibilities, it’s a completely passive investment.
- Seeking stable returns: We achieve enhanced rates, guaranteed by a FTSE 250 company and backed by the Government, which offers a reliable income stream with minimal risks of void periods.
- Long-term: With our long lease terms, SHO’s are ideal for those seeking long-term investments and stable returns over an extended period.
However, if you are seeking short-term returns, or prefer a more hands-on approach to property management, social housing investments may not be for you. We would however still recommend that you consider our STO (Source To Order) premium package, as these could be flipped to generate faster returns.
What are the benefits of our social housing investments in the UK?
We are currently working with numerous providers covering the majority of England and Wales who offer a range of long lease terms, but are social housing investments good? Well, it all depends on the leases which will vary between provider but some of the benefits include:
Benefit from LHA rental payment rates of up to 30% above standard rates.
Enjoy the security of rent payments backed by a FTSE 250 company and the government.
Eliminate the risk of vacancy periods and lost income.
Rest assured that the property meets Gas Cert, EPC, EICR and Fire Regulation compliance.
Choose from lease terms ranging from 5 to 10 years.
Although we do all the legwork for you, you solely hold the title deeds, meaning the property is yours.
(If applicable)
Avoid middle management, registration or set up fees. There are also no council tax or utility bills to pay.
Transfer responsibility for property maintenance to the Home Office.
Experience hassle-free property ownership with no tenant or neighbour contact.
Our Popular Social Housing Areas
Social housing isn’t exclusive to any particular area, but it is more commonly approved in some areas as opposed to others. We’ve listed a few of our main locations where we commonly have these deals available for you below:
How do you invest in social housing in the UK?
The easiest and simplest way to invest in social housing is to use The Property Sourcing Companies’ Supported Housing Investments package.
Instead of having to jump through hundreds of loopholes, we’ve detailed how investing in social housing works with our process there are only 4 steps:
You can secure our services to source your desired Supported Housing Opportunity by first placing an STO order with us.
This is our premium Source to Order service, in which you highlight what type of property you are interested in, and we source it for you within a given time frame. There is a fee to this, but when you complete on the property, it essentially pays part of the overall sourcing fee.
We use your requirements to identify a property that meets your specific requirements (location, budget, risk profile) and has been approved by our trusted providers.
You will then receive detailed information about the property. Take your time to review and decide whether it aligns with your investment goals.
Once you accept the property, pay the remaining reservation fee to secure your investment.
Sign a reservation agreement/conditional exchange contract outlining the delivery period, reservation fee refund policy and completion terms. This step ensures all parties are clear on the process and expectations.
Complete the purchase within 14 days of the lease being signed. Job done! You now own a high yielding, hands off Supported Housing Opportunity investment property.
By choosing The Property Sourcing Company you bypass the usual headaches and complexities of investing in social housing. Our proven process and team ensure a smooth, efficient and enjoyable investment experience.
What are the pros & cons of investing in social housing?
Investing in social housing has its pros and cons, it’s an attractive option for some and not so for others. Despite some considerations the benefits far outweigh the drawbacks and it’s a compelling investment opportunity.
Pros of investing in social housing | Cons of investing in social housing |
---|---|
✓ Hassle-free management | ✘ Location limitations |
✓ Reliable returns | ✘ Rental restrictions |
✓ Positive social impact | ✘ Legal and tax costs |
✓ Diversification & stability | |
✓ FRI Leases | |
✓ Long-term growth potential | |
✓ Sustainability focus |
The advantages of investing in government backed social housing
Investing in government backed social housing
means no hassle property management and a passive income. Housing associations or councils deal with tenant issues, maintenance and rent collection so you can have a truly passive income.
With high demand government support, social housing also means stability and good yields so your investment is underpinned by necessity.
By investing in social housing you are helping to solve the housing crisis and provide more affordable homes, making a real difference to people’s lives and stronger communities.
Social housing adds a new asset class to your portfolio that is less volatile than stocks and bonds, with long term leases providing a predictable income over time. FRI leases shift maintenance and repair responsibilities to the Home Office and provide a more predictable income stream and protect you from unexpected costs.
Social housing can also give you steady income and potential capital growth, especially in high demand areas.
The disadvantages of investing in social housing property investments
Investing in social housing can be a great opportunity, but it does come with its own set of challenges. For starters, the availability of social housing properties can vary quite a bit depending on the location, which means you’ll need to do some careful planning to ensure long-term success.
That’s where we come in! As the UK’s top investment sourcer, The Property Sourcing Company is committed to finding properties that fit your unique needs. We’ll hunt down options in the right areas and make sure they align with your investment goals.
You’ll always have the final say on property suggestions. If we come across a property that doesn’t quite meet your criteria, don’t worry—we’ll keep searching until we find the perfect match for you. Your satisfaction and success in investing are what we prioritize.
When it comes to tenants in social housing, they’re usually selected by housing associations or councils. While this might limit your control over who rents your property, it does help ensure steady occupancy and reliable rent payments. Plus, since you won’t be directly managing the property, the type of tenant may not have a huge impact on you.
Like any property investment, you can expect to encounter legal fees and taxes along the way. Our team is ready to help you find a solicitor, explore financing options, and tackle any other challenges that may arise. We’re here to support you every step of the way, making the process as seamless as possible.
Should you invest in social housing?
Investing in social housing offers a unique opportunity for investors to strike a balance between earning financial returns and fulfilling a social responsibility. This sector is crucial for providing affordable housing to those in need, including vulnerable individuals and families, which is a significant issue in our country.
One of the standout benefits of putting money into social housing is the reliable income it can generate. With long-term leases tied to government-backed housing associations or local councils, investors can count on a steady stream of rental income.
Moreover, the UK government has rolled out a variety of incentives to make this sector even more appealing. These include grants like the Social Housing Decarbonisation Fund and the Home Building Fund, loans such as the Affordable Homes Guarantee Scheme and the Housing Infrastructure Fund, as well as tax breaks like the Social Investment Tax Relief and VAT Exemption.
That said, it’s worth noting that rental yields in social housing may not be as high as those found in the private rental market, mainly because of the lower rent levels. Plus, investors often have limited say in tenant selection and property management, as these responsibilities usually fall to the housing association or local council.
Despite these factors, the demand for social housing is on the rise, driven by the ongoing housing crisis in the UK. This increasing demand could lead to a rise in the value of the investment over time. Additionally, the government’s ongoing commitment to tackling the housing shortage indicates that support for social housing initiatives is likely to continue.
What is the social housing investment return?
When you invest in UK social housing, you’re not just making a smart financial move; you’re also contributing to a meaningful cause. With the ongoing rise in demand for affordable housing, this sector is becoming a go-to for investors who want to see both profits and positive social change.
Investing in social housing means you can expect reliable rental income, thanks to long-term leases from government bodies or housing associations that guarantee regular rent payments, often with annual increases linked to inflation.
With high occupancy rates and a steady demand, the risk of having vacant properties is low, which helps maintain a consistent income flow. Typically, social housing investments can yield over 8.5%, depending on factors like location, property type, and lease agreements. Plus, refurbishment projects can lead to even greater returns.
As the need for affordable housing continues to exceed supply, the value of social housing properties is likely to grow over time, providing significant capital appreciation.
Why invest with us
We’ll find you the best deal, with the highest yield possible, tailored to your requirements.
Investing with The Property Sourcing Company allows you to not only achieve impressive financial returns but also make a meaningful social impact.
We customise our investment solutions to meet your unique needs, drawing on our extensive industry experience to uncover the best deals with the highest yields.
Our parent company, The Property Buying Company, frequently acquires properties at below market value, which means we can pass those exclusive savings on to you, ensuring you get the most bang for your buck.
Discounted property with high yields
Transparent & honest throughout the process
We’re property experts with years of experience
Investment opportunities tailored to your requirements
FREQUENTLY ASKED QUESTIONS
Have you got a question about investing in social housing that we’ve not yet answered?
Not to worry, we’ve pulled together some of the questions we regularly get asked and answered them for you below:
Social housing is an essential component of the UK’s housing framework, aimed at providing affordable and secure living spaces for individuals and families who find it tough to afford market-rate housing. It acts as a safety net, offering a more accessible option compared to the private rental market.
Historically, social housing has been managed by local councils and housing associations, but the scene has shifted to include registered charities and social care providers as well. These organizations step in as landlords, offering lower rental rates that are usually based on the average local income, along with longer-term leases to promote stability.
The main goal of social housing isn’t to make a profit; it’s about meeting crucial social needs. It strives to reduce homelessness, support those in vulnerable situations, and tackle the ongoing housing crisis.
By providing affordable housing options, social housing plays a vital role in building inclusive communities and ensuring that everyone has a place they can truly call home.
Over the years, the definition of social housing has expanded to include various forms of affordable housing, such as shared ownership and intermediate rent schemes. Yet, at its heart, social housing remains a lifeline for those who are struggling to find suitable and affordable options in the private market.
The UK government acknowledges the significance of social housing and actively promotes its growth through various incentives and funding initiatives. This commitment highlights a broader recognition that having a secure and affordable home is not just a basic human right, but also a fundamental pillar of a healthy and fair society.
Investing in social and supported housing is a fantastic opportunity for those looking to earn a steady income without too much hassle. Right from the moment you make your investment, these properties start bringing in money, often yielding returns that outshine traditional residential investments.
With returns hitting 8.5% or more, social housing can offer a reliable and consistent income stream. This stability comes from long-term leases with government-backed housing associations or local councils, which means you can count on steady rental payments for a good stretch of time.
Social housing investment stands out as a distinctive approach within the investment world. It focuses on purchasing properties specifically to lease them to government-supported housing providers.
These properties play a crucial role in offering affordable and secure homes for vulnerable individuals and families who struggle to find traditional market-rate housing.
This investment model creates a win-win situation. On one side, it meets a vital social need by ensuring that safe and appropriate housing is accessible to those who need it the most.
On the flip side, it provides investors with a steady and dependable income stream, thanks to long-term lease agreements with trusted housing providers and the backing of government initiatives.
When it comes to housing investments, both social and private options have their perks, but social housing really shines for investors who value stability, passive income, and making a positive impact.
With government-backed, long-term leases, you can count on steady rental income that often goes beyond 8.5%. Plus, the hands-off nature of these investments means you won’t have to deal with the usual headaches of property management. This winning combination lets you earn reliable passive income while also playing a part in addressing a crucial social need, making it a great choice for those looking for both financial gains and ethical rewards.
On the flip side, private rental properties can offer higher yields, typically between 5% and 8%, but they often come with the need for more hands-on management.
Landlords usually have to take care of finding tenants, fixing maintenance issues, and managing relationships with renters—unless they decide to hire a letting management company, which adds to the costs. This extra involvement can take up a lot of time and effort, which might make the prospect of those higher yields less appealing for some investors.
We help our investors find leases that last between 5 to 10 years. Our main goal is to offer them the most secure, hassle-free, and advantageous leasing options out there.
If you’re not quite sure whether our Supported Housing Opportunities are the right fit for you, don’t hesitate to reach out. We can chat about other options and assist you in making a well-informed decision that suits your needs.
Our social housing investments provide a truly hands-off experience—no dealing with tenants or neighbors. The service provider takes care of everything related to tenant management.
This means your investment is entirely hands-off, letting you reap the rewards of passive income without the headaches of managing properties.
Investing in social housing comes with a unique perk: it offers both tenant security and predictable rental income. Unlike private rentals, where leases can be short and tenants frequently change, social housing often provides tenants with long-term leases that ensure stability.
This stability is a win-win for everyone involved. Tenants enjoy the peace of mind that comes with having a secure home, which helps alleviate the stress of moving around often. For investors, this means a more dependable income stream. With less risk of vacancies and tenant turnover, they can count on a consistent flow of rental payments, making it much easier to plan and manage their cash flow.
START BUILDING WEALTH
When you choose The Property Sourcing Company, you’re tapping into our extensive market knowledge and a full range of services, from sourcing properties to purchasing and managing them.
By investing in social housing with us, you’re not just making a smart financial move; you’re also playing a part in tackling the housing crisis and building stronger communities.
Align your investments with your values and reap the rewards of both solid financial returns and a meaningful social impact.