The UK’s housing crisis presents a potentially lucrative investment opportunity.
With more than 250,000 people currently homeless and many more vulnerable people needing a permanent place to call home, the UK’s housing crisis presents a potentially lucrative investment for private investors.
While the British government has been working to solve the issue since 2010, their efforts continue to fall short. It’s estimated that it will take in excess of £250 billion to tackle the chronic shortage of social and affordable housing.
With demand continuing to rise, you can help fill the gap in the housing crisis and reap the financial rewards.
If you’re interested in potentially profitable ways to do good with your wealth, there are two distinct areas of investment opportunity:
Provides homes to low-income families and individuals
Specifically designed for individuals who need additional support alongside a place to call home. This may include adults with learning difficulties who might need live-in carers, people with mental health needs, or individuals with addiction problems.
Supported living accommodation is a popular alternative to residential care because it offers greater opportunity for independent living and improved care outcomes.
For investors, since supported living accommodation is fully funded through the welfare system, it typically attracts higher rents than other forms of social housing – often delivering yields of 9% or more.
Earn passive income and eliminate many of the headaches typically associated with being a landlord.
Housing associations provide secured contracts with income backed by central government. Plus, this is a property investment that’s entirely hands-free, effectively eliminating the typical headaches associated with being a landlord. The housing association pays 100% of rent direct to investors, so you can enjoy uninterrupted rental income. Returns are also index-linked, providing you a stable hedge against inflation.
Leases typically range up to 25 years, making them a suitable option if you’re looking to benefit from a predictable income stream over an extended period.
Long-term commercial leases ensure a reliable rental stream and minimise tenant turnover.
Invest in fully completed properties that are already leased and benefit from immediate positive cash flow. In fact, your investment will start generating a consistent income stream from day one.
Once the property is purchased there are no extra costs to pay. Properties are free from ground rent or service charges, so you can relax in the knowledge that you can maximise potential rental income without worrying about unexpected additional or hidden costs cropping up.
With all aspects of property maintenance handled for you, you can relax and enjoy your truly hassle-free investment.
An investment in supported living means you are making a meaningful social impact and supporting the wellbeing and stability of some of the most vulnerable people in society.