WHAT IS A SOCIAL HOUSING INVESTMENT?
Investing in social housing can be a confusing topic, with several challenges, with the main one being understanding exactly what these opportunities are.
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Investment opportunities tailored to your requirements
Well don’t worry, in this article we touch on exactly what social housing investments are, their importance and which investors they may be ideal for. Not only that, we offer you the unique opportunity to support the community and purchase some of these deals.
WHAT IS SOCIAL HOUSING?
Social Housing typically means affordable housing, which allows those who otherwise couldn’t be provided with the safety and security that a stable home provides. It’s a crucial part of many communities across the UK and with the demand for properties ever increasing, providing these homes is becoming an ever-growing challenge.
This housing market challenge is causing a significant shortage of these properties for the UK Government to place some of the most vulnerable people who can’t afford their own homes privately.
WHAT EXACTLY ARE SOCIAL HOUSING INVESTMENTS?
It’s not an investment you might come across every day, these investments are a little different to your standard Buy To Let or HMO. The investment involves purchasing a property that has a Government-backed lease in place with a social housing provider who will place vulnerable tenants and in return provide a consistent source of income.
This type of investment is gaining attraction and attention in the industry as the properties become far more prevalent in line with the ever increasing need to provide affordable and secure housing to the vulnerable. This particular type of investment will not only serve as a benefit to society, but it offers a whole host of positives for you as an investor, which we will go into more depth later in the article.
The leases that are in place with these investments are often long term, which makes it an attractive option for those looking for a stable return on their money without having to deal with the typical issues that come with a Buy To Let property. Here you can find out more information about investing in social housing.
THE IMPORTANCE OF SOCIAL HOUSING
Traditionally social housing has always been a government responsibility, which is why investing in social housing is such a new term. Over the past few months and years this has been opened up because of the significant strain on the government to fulfil their social housing requirements, providing an area for private investors to assist and address the housing crisis and access the government incentives that are coupled with that.
The investment is appealing for many as it offers a duel benefit, with not only being an attractive option for the investors but you get to play a significant part in providing housing for vulnerable people and alleviating a significant government concern.
OUR APPROACH & AVAILABLE DEALS
We are partnered with a cash property buying company, which presents us with the unique opportunity to source properties that will meet the extensive criteria of the social housing providers that we work with.
Once we have identified a property that meets the criteria, we will undertake all the required refurbishment work and negotiation required to acquire a government-backed lease, ensuring the property is fully up to regulation.
When complete, the lease will be placed and we will package the property up to provide as a purchase option to our investors. The lease agreement will be sold with the property and pass to the investor, resulting in a long-term, high yielding, hassle free investment.
REASONS WHY YOU SHOULD INVEST IN SOCIAL HOUSING
For most, this is a very different kind of investment from your traditional property methods, so why should it appeal? Throughout the article, we’ve mentioned how it’s a hands-off investment, and it truly is, once the lease is in place the provider does almost everything for you. There are no void periods, bills, or utilities to pay, and any general maintenance required for the property is covered.
You will receive a yield typically between 8-14%, for a long term, with government funding, at no cost.
WHAT DOES THE LEASE OFFER INVESTORS?
Leases do vary so it’s hard to give specifics, but typically they come with a 7 year tenancy which ensures there are no void periods, bills or maintenance required over the full duration – as we said, a completely hands off investment.
THE KEY BENEFITS
Guaranteed Rental Income
Consistent monthly payments without voids.
Enhanced Returns
Increased profitability through optimized rental strategies.
Hands-Off Investment
Minimal involvement in property management.
No Fees
Transparent pricing with no hidden costs.
Flexible Options
Tailored solutions to suit your investment goals.
PROPERTY MANAGEMENT AND COMPLIANCE
Full Repairing Leases
Landlord protection against property damage.
Compliance
Adherence to all legal requirements, including HMO licensing.
No Voids
Continuous tenancy for maximum rental income.
WHO ARE THESE INVESTMENTS IDEAL FOR?
Right now you might be thinking well that all sounds amazing, sign me up!
At The Property Sourcing Company though, transparency is our top priority. We’ll straight away tell you that these deals aren’t for every investor, they don’t always align with your individual goals and needs.
These deals offer a long term stability which makes them perfect for people who are socially conscious, wanting a hands-off investment, seeking stable return and want to park their money for the long term.
If you are looking at shorter term returns, or are interested in being more hands on, then this may not be for you.
WHY CHOOSE THE PROPERTY SOURCING COMPANY?
Our experienced team work for you. We have over 50 years of combined first hand experience in offering below market value property opportunities to our investors. Perhaps more importantly than that, we’ll find you the best deal, with the highest possible yields, that are tailored to your specific requirements.
Social housing investment opportunities can be complex, we can help you understand their intricacies and figure out whether it’s the right option for you, taking into account yields, bricks and mortar value, capital growth potential and more in order to package them up clearly.
By investing with The Property Sourcing Company you will be achieving high financial returns, whilst making a positive impact. Our unique position and access to below market value properties means that we can pass exclusive discounts directly to you, ensuring you always get the maximum value out of your investment.
Invest in us and you’ll be investing in success.