Government Backed Rentals

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.

The UK Govt program for housing Asylum seekers has been active since the early 1990s.

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..

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.

Mears PLC manages the properties in the northeast of England whilst Serco PLC manages the properties in the northwest of England.

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.

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
• Footpaths
• Roofing – including damage caused internally by roof leaks
• Rendering
• Boundary walls
• Pointing to external walls and chimney
• Rewire and electrical upgrades to make legally compliant
• Boiler replacement
• Full heating replacement
• Windows
• 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

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.

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.

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.

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.

Serco provides contracts with 7+3 years and Mears provides a 5-year contract.

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.

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.

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.

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.