UK Real Estate Investment Opportunity
Date Posted:Wed, 30th Oct 2024
The UK is currently facing a growing crisis in the undersupply of Social Housing, particularly in Supported Housing. This essential service helps more than half a million people live independently where they otherwise wouldn’t have been able to. Tenants range from survivors of domestic abuse to young people leaving care to those with learning disabilities and more.
Most of this demand will come from older people, with 75-77% of future Supported Housing required for this demographic. However, there will also be a growing need for homes tailored to working-aged adults and those in crisis situations.
Without sufficient Supported Housing, thousands of people would face homelessness, and the need for other services such as inpatient psychiatric care, residential care homes, and even prison spaces would skyrocket. The National Housing Federation (NHF) has raised concerns that the UK’s current government lacks a long-term plan to meet this rising demand, a failure that could come with dire social and financial consequences. Private investors need to step in and help with the supply.
What Needs to Be Done
To address the UK's growing Social Housing crisis, several steps must be taken:
- Commitment to Build 167,329 New Homes: A national housing strategy is needed to meet the future demand for supported homes.
- Empowering Local Authorities: Local governments and care boards should have the authority and resources to plan, fund, and commission the necessary housing developments.
- Ring-fenced Funding: Secure funding is essential to ensure support costs keep pace with rising demand. By 2040, it is estimated that £3.4 billion annually will be needed to cover these costs.
Conclusion: An Urgent Call for Action
The growing demand for Supported Housing in the UK presents an urgent challenge but also a lucrative investment opportunity. By committing to a long-term plan that addresses both housing supply and support services, the UK government can ensure that vulnerable populations are provided with the homes they need, while investors can benefit from the expanding market for Social Housing.
Investing in Supported Housing is not just about financial return — it’s about building a more equitable future where everyone has the support they need to live independently and with dignity.
An Overview of one of our Investments
Take a look at the key facts and figures underpinning City Exchange’s investment credentials.
- Prices from £175,000
- 10% NET rental assurance
- No landlord costs for: ground rent, service charge, building insurance management
- 25-year management agreement
- Simultaneous exchange and completion
- Cash purchase only
- £5,000 reservation fee
- Potential exit opportunity in place at 30% profit on purchase price within 3 years
Please visit our website https://ereproperty.com/investment-type/social-housing-property-investments/ for more information.
About E.R.E Property Group
E.R.E Property Group have been established for over 20 years, helping more than 6,000 clients secure over £2 Billion worth of UK property investments. Their main investment focus is on key Northern investment locations such as Leeds, Manchester and Liverpool, as well as Social Housing opportunities. With offices in Leeds, Hong Kong and Dubai they offer a fully hands off investment service helping investors worldwide.