Helping the housing crisis

Why everyone can win through social property investments

Even prior to the onset of COVID-19, the scale of homelessness in the UK had remained at a worrying and constant level for many years. However according to recent figures from Crisis, around 200,000 people in the UK are now experiencing the most severe forms of homelessness, whilst many more find themselves trapped in the vicious cycle of temporary accommodation such as hostels, and even less visibly, ‘sofa surfing’ at friends, family and in many cases complete strangers’ houses. 

With the withdrawal of the furlough scheme and minimal increases in universal credit ensuring thousands more continue to feel the financial effects of the pandemic, it’s more essential than ever those in power find a way of alleviating the dangers, hardship and stresses associated with homelessness.

The good news is, now even private investors can do a great deal to help the situation.

So… what is social housing investment?

Historically, most of the biggest yield-makers in the property market existed within the private and commercial sector. But though these areas can provide a reliable source of income, it’s very rare investors can lay genuine claim to witnessing any visible impact on their investment outside of their own bank balance.

Through investing in affordable homes that can be lived in by society’s most vulnerable, investors of all net worth levels have the chance to make a genuine and positive difference, whilst at the same time benefitting from consistent and ethical financial returns on the money they’ve put in.

How does it work?

Social housing investment is most commonly accessible by investing in specialist trusts who, working alongside the government, ensure affordable homes are built to the highest standards and are then lived in by extremely low-income families, those affected by homelessness, domestic abuse, asylum seekers and many others facing severe struggles on a daily basis. Most importantly from an investment standpoint, rents are then paid by the[1]  government on long-term leases through local housing associations, resulting in a guaranteed income for investors.

How Social Property Invest can help you

As experts with over fifty years combined experience in this area of the property market, we’re incredibly proud to work closely with the UK’s leading financial institutions and social property trusts, as well as government-backed house builders and management companies such as SERCO and Mears Group.

Alongside our relationships with these market leaders, our own property portfolio features a range of social investment opportunities, particularly in the North of England and Scotland where many of the highest rental yields can be earned[3] . This means that from initial introduction through to investment and beyond, we are perfectly placed to provide a fully integrated, end-to-end property service to any investor or wider property trust.

With investment companies in the UK now managing nigh on £4billion in social property assets, we understand how important it is for interested investors to work with companies who can deliver on the promises of both financial and ethical returns.