The Social Housing Crisis and How You Can Help
Over the past 40 years there has been a housing crisis in Britain and that continues to grow by the year. Feeling the after effects of the COVID-19 pandemic, the UK Government failed to deliver on their new housing pledge by almost 90,000 homes in 2020/2021 (source: https://commonslibrary.parliament.uk/research-briefings/cbp-7671/) . This has left local authorities desperate for properties to house those in need, which has seen them turning to private landlords for a solution.
So, what is social housing?
Social housing is lower-cost rented housing provided by landlords registered with the social housing regulator, known as a social landlord. Social landlords could be a council, a housing association or private landlords.
How Investing In Social Housing Helps You
Working with a social housing provider on a longer term basis than a normal tenancy gives you multiple different benefits. Contracts can be up to 20 years, but in most cases are around 5 plus years, versus a normal Assured shorthold tenancy which would be no longer than 2 years.
The benefits look like this….
* Peace of mind
* Hands off investing
* Giving back to people less fortunate
* Making profit
* Certainty of income over long periods of time
* Not worrying about maintenance (often included in contracts)
Why Should You Consider the security of buying a property with a Social Housing contract right now?
When the economic climate is changing and inflation is at an all time high, concerns of investing may be:
CONCERN: Mortgage rates going higher
WIN: Mortgage rates may go up but you are fixing long term rental contracts so you can predict your future income in line with the mortgage you take.
This takes away the worry about investing by giving you certainty.
CONCERN: Tenants not being able to pay
WIN: Social housing contracts means the tenant is actually the provider and so will guarantee the rents so missed rental payments for the landlord.
This means you can rely on the income without the worry of people not being able to pay.
CONCERN: Maintenance costs going up
WIN: Maintenance is covered in most contracts.
This means you do not have to factor in extra costs for things because it is covered within your rental contract.
With the rising cost of living and events happening around the globe, social housing rental opportunities will be an absolute necessity for years to come to help those in need. With the Government struggling to keep up with demand, there is an opportunity for investors to help bridge the gap that local authorities are so desperate to fill.
Does this sound like something you would be interested in?
Contact our team today.