The Benefits of Investing in Affordable Housing and Supported Living Accommodation in the UK
There is a widely acknowledged chronic shortage of Affordable Housing in the U.K. According to Shelter, the housing and homelessness charity, a household became homeless every 4 minutes in England in the last year and 1.15 million households were found to be on Local Authority Housing Authority waiting lists, with only 290,000 homes made available.
Escalating private rents and frozen housing benefits have led to perilous housing conditions, particularly for low-income earners and those who are unable to work due to mental or physical disabilities. In fact, it has been estimated that nearly half of working private renters could be just one missed paycheque away from losing their home. It is therefore extremely important that the government respond to this crisis by investing in a new supply of social homes and increase housing benefit so that it covers at least the lower third of private rent costs in the meantime.
Abbey Investments was founded on a mission to tackle the current social housing crisis through investment in quality housing for vulnerable adults and homeless people across England and Wales.
The property we invest in caters for the following social needs:
Supported Living:
This can be a single-occupancy or shared-occupancy house or apartment for adults with learning difficulties or physical or mental disabilities. The property is adapted to suit the inhabitant/inhabitants’ specific individual needs and depending on the level of requirements, there is often a full-time carer living on-site alongside visiting support from specialist carers and services who help residents live as fully and as independently as possible.
Extra Care/Assisted Living:
Extra Care or Assisted Living is a type of residential care for people over 55 years old who need between 4 to 16 hours of care per week. It comprises of an individual or couple living independently in a self-contained flat within a specialist complex (often referred to as Assisted Living Facilities or ALF). This model allows people to retain their independence while receiving just the right amount of care they need with tasks such as washing, dressing, shopping, household chores, going to the toilet or taking medication.
Temporary Accommodation for Homelessness:
This type of accommodation is for people without a temporary home or for those who are in danger of becoming homeless. Usually, it consists of self-contained studios or flats within a specialist complex that offers residents support with health and addiction, life skills, administration, further education and finding a job. Residents do not normally stay longer than a year or two in this type of accommodation before moving on to a more permanent situation, such as renting Affordable Housing or moving in with family or friends.
Affordable Housing
This comprises of Social and Affordable rented accommodation as well as Shared Ownership property. Social Rented Housing comes with low rent and it is prioritised by need whereas Affordable Rented Housing has a higher rent and is less secure but also prioritised by need. Affordable Housing can also refer to Intermediate Rent homes, which cost 80% of the market rate.
Apart from addressing the shortage of Affordable Housing for vulnerable adults on a practical level, private investment in this sector has a positive social impact that institutionalised accommodation does not offer. Institutionalised accommodation can be very isolating, leaving residents feeling marginalised, cut off and closed in from society. On the other hand, Supported Housing empowers people to live independently within their communities, close to the family and friends they grew up with. Partnerships with Local Authorities and Commissioners also help give residents the support, positive environment and life skills they need to thrive and participate in society. Many Supported Housing tenants are in full or part-time employment and they benefit from regular social and learning activities within their home or living complex.
While supported independent living solutions are much preferable to institutionalised accommodation for the well-being, security and progression of tenants, the benefits Affordable Housing can offer landlords are also highly considerable.
The Benefits of Investing in Affordable Housing for Landlords:
Growing Demand
The demand for Specialised Supported Housing for people with learning disabilities is predicted to increase by 37% by 2030 as the population grows and more people are moved out of hospital settings as a consequence of a government target to move people with learning disabilities from the hospital into the community.
The National Housing Federation has found that 8.4 million people are currently affected by the housing crisis (that’s one in seven across the UK) and that of these, 3.6 million would need a social rented home to meet their needs. It has called for 340,000 new homes to be built over the next 10 years to address the shortage in affordable and social housing. This, along with 726 homeless deaths reported by the ONS last year is shocking and the demand for safe, secure affordable accommodation for vulnerable adults cannot be met fast enough.
Long-Term Leases
With most vulnerable adults seeking a long-term home, the supported living rental market can offer a level of stability that the standard rental market doesn’t. Affordable Housing for the Supported Living sector is usually subject to long-term leases of between 20-30 years between owners and local Registered Providers, such as Housing Associations and Local Authorities. The provision of suitable property for the individual and social needs they have identified allows Registered Providers to focus on the services they provide, much to the benefit of tenants, while a stable, long-term rental income is generated for investors.
Peace of Mind
As Specialised Supported Living accommodation and Social Housing is managed and maintained by the Registered Providers that the property is leased out to, landlords do not face the hassle and expense associated with private tenancy management, repairs and maintenance.
Financial Relief for Government Budgets
People living independently within Supported Living homes costs the government considerably less than residential care home and hospital accommodation.
At Abbey Investments, our team has acquired a vast scope of social housing expertise and established relationships with Care Providers, Commissioners and Local Authorities throughout the U.K. in order to deliver much needed Affordable Housing schemes, as independent projects or wider development initiatives as quickly and as efficiently as possible.
Drawing on our expertise on land, planning, construction and finance, we always welcome discussions with Local Authorities to identify social needs and locations as well as the individuals and families in need of Affordable Housing. We also welcome partnerships with Care Providers, Commissioners and Property Developers as we unfold our efforts to ease the pressure on social housing waiting lists, transform lives and create positive social impact.
If you are interested in joining us on our mission to increase the supply of Affordable Housing across England and Wales or if you would like any further information on investing or selling a property or development that may be suitable for Supported Living or Social Housing, please get in touch.