Social housing is a term used to describe a variety of accommodation provision for those that need it. This includes low income housing, housing for those with learning, physical or other disabilities, housing for the homeless, those escaping domestic abuse, asylum seekers or any other group requiring safe and secure accommodation. Big Society Capital’s latest market data showed that investment in social housing is by far the largest segment of a £6.4billion social impact investment market. Private investment in the social housing sector has been steadily growing for several years now and is one of the areas they highlight for future growth.
This investment trend is on the rise, partly because there is a great need to plug the gap between demand and supply of social housing, but it also offers unique qualities for property investors – rent is usually backed by central or local government schemes with voids in rent usually covered by the housing association. As tenancy contracts are not with the property occupants but with a housing association they also hold more qualities of a commercial real estate contract, often with repair and maintenance clauses and longer lease terms. In addition, investment in social housing property offers investors the opportunity to make a real difference with their money whilst still earning attractive net yields and a stable monthly income.
The latest market data showed that investment in social housing is by far the largest segment of a £6.4 billion social impact investment market
Private investment in the social housing sector has been steadily growing for several years now and is one of the areas highlighted for future growth
This investment trend is on the rise, partly because there is a great need to plug the gap between demand and supply of social housing
It also offers unique qualities for property investors – rent is usually backed by central or local government schemes with voids in rent usually covered by the housing association
As tenancy contracts are not with the property occupants but with an organisation such as housing associations they also hold more qualities of a commercial real estate contract, often with repair and maintenance clauses and longer lease terms
Investment in social housing property offers investors the opportunity to make a real difference with their money whilst still earning decent net yields and stable income
Social Housing is a growing market and is becoming increasingly popular in a range of settings as an alternative to residential care, with a focus on providing assisted independent living and better care outcomes.
Supported living accommodation is funded in full that is both accommodation and additional care needs, through the welfare system. As such, it can attract higher rent allowances than other forms of public housing.
Social housing work is due for steady growth over the next two years, as Glenigan reports in January 2024, that despite a 13% slump in 2023, the overall value of social housing project starts at an underlying level will rebound by 7% in 2024.
