Government Backed Rentals
Take advantage of affordable investments with high returns and make a genuine social impact
Government Backed Properties
Earn a guaranteed monthly income for low-cost investment
With rents paid by blue chip companies via central government, investors can benefit from 7% net yields on a £95,000 cash investment.
As properties are managed by local authorities there are no additional maintenance costs and rents will be paid even if the property remains empty for a period of time.
- Invest from £95,000
- Rents paid via blue chip companies via central government
- No Maintenance
- No Voids
- 5- 10 year rental contracts available continuous.
- 7% Net Yields.
- Cash buyers only
What are the advantages of social housing with asylum seekers?
Both Serco and Mears were awarded a 10 year contract by the Home office to provide housing for asylum seekers. As there is equally a high demand and immense shortage of social housing properties, investors able to offer these to Serco and Mears will benefit from no voids, whilst all management and maintenance is managed by the companies themselves, unless there is structural damage in which case the property owner will be liable for costs.
How long has the asylum housing programme been in place for?
The UK Govt program for housing Asylum seekers has been active since the early 1990s.
How high is the housing demand for asylum seekers?
As is evident from the news, many asylum seekers unfortunately find themselves in unimaginable situations and are desperate to begin a new life in the UK. Some enter legally and some illegally, however what is undeniable is their need for safe housing. Furthermore, as a result of COVID-19 the legal process of granting asylum to those staying in the UK is now estimated to be longer than five years, meaning more people are in need of housing than before..
Can I purchase a property with a mortgage?
The majority of lenders avoid providing mortgages on asylum seeker properties due to their long-term contract nature of 5 to 10 years. We therefore sell all properties of this nature on a cash basis.
Dependent on an investor’s personal situation and their preferences, re-finance is potentially available through via Together or Assetz Capital. However we cannot guarantee this will be provided to you as their services are independent from us.
Who manages the properties I am looking to acquire?
Mears PLC manages the properties in the northeast of England whilst Serco PLC manages the properties in the northwest of England.
What is the cost of the monthly management fees?
There are no management fees. Serco PLC and Mears PLC do not charge landlords property management fees. Ongoing property management is part of your contract with Serco and Mears.
Do I have to pay maintenance fees?
Serco covers maintenance costs up to £5,000 per annum, with the exception of structural issues.
Mears does not have a limit of maintenance fees and covers all nonstructural issues. Mears’ definition of structural issues are as follows:
- External drainage – unless drains blocked by SU
- Fencing and gates
- Roofing – including damage caused internally by roof leaks
- Boundary walls
- Pointing to external walls and chimney
- Rewire and electrical upgrades to make legally compliant
- Boiler replacement
- Full heating replacement
- Full kitchen
- Full bathroom
- Damp works – excludes damp caused by condensation
- Structural issues with floors
- Front / back door
- Gutters and downpipes
- Asbestos survey
- Asbestos removal
- Any legal certification
Do these properties need to be refurbished?
No, all of the listed properties up for sale have been newly refurbished, inspected and adhere to building and council regulations as well as Serco and Mears legal standards.
How long does the sale process take?
We sell according to a 28 day completion time frame that includes an auction pack with electrical certificates, gas safety certificates, searches, and property condition reports from Mears or Serco.
Can I do a survey on the property before purchase and completion?
As the tenants are asylum seekers and are considered vulnerable people that are protected by law, we sell the properties with the condition reports supplied by Serco or Mears in lieu of survey, as the property must be returned in the original condition that the properties have been provided at the beginning of the contract.
What are the ongoing costs after I purchase a property from you?
As the landlord, you have a responsibility to pay yearly housing insurance, yearly gas safety certificates of £60 per year and for any potential structural issues that may arise.
Serco or Mears will not contract or pass a property with any deemed structural issues. Properties must pass building regulations and any council inspections. An example of a previous structural issue is the roof tiles we had to replace during a winter storm as well as dampness emanating from the windows on a property.
What happens on the sale date?
Upon sale, we confirm to Serco and Mears that the property has been sold. You need insurance in place before purchasing (please arrange this before completion). You should provide Serco and Mears with your contact and UK banking details, and you MUST have a UK bank account open before conveyancing.
What are the contract term durations?
Serco provides contracts with 7+3 years and Mears provides a 5-year contract.
Can contracts be renewed at the end of the term?
We cannot guarantee nor confirm that contracts will be renewed at the end of the contract term. However there is a great need for these types of asylum seeker properties in the UK, and we have had contracts renewed in the past with Mears from 2014 to 2019 for an additional 5 years, and in 2020 we received the new contract with Serco of 7 years plus 3 years.
Do I need special insurance on this property?
We use Vasek as they insure asylum seeker properties and we can recommend other insurance agencies to use. Insurance must be in place before conveyance of the property as Serco and Mears will not provide a contract without insurance on the property.
Can I purchase a property in my personal name or does it have to be a company
Both personal and company purchases are acceptable for us. This is a personal decision decided by you and/or your financial advisor. However, either purchasing entity must have a registered and active UK bank account.
What prevents the property from being damaged?
Each property has a housing officer from Serco or Mears who is responsible for the property and tenants. The property must be returned in the original state as per the lease.
Do you offer a sourcing service in addition to the sale service?
No, we do not provide a sourcing service since as this is of high risk to a buyer. External sourcing agencies may manage the refurbishment of a property, however it is unlikely they will take on responsibility for the full contract term of any property. We do recommend you use a sourcing service in this way.
Our available properties may change on a daily basis, due to demand.
For more information on our latest opportunities, please contact us