Social Housing & Assisted Living Frequently Asked Questions
Social housing and assisted living investments offer secure, hands-off returns with long-term, government-backed income. With growing demand for specialist housing, they provide stable returns while supporting vulnerable individuals. Below are answers to common questions about this opportunity.
Can a UK limited company purchase a social housing property?
Yes, many clients opt for this option if it aligns with their portfolio needs. 365 Invest work alongside a company specialise in setting up and managing limited companies for this purpose.
Are social housing investments available to overseas investors?
Yes, many of our clients are from overseas. We can recommend a company to guide you through completing the necessary paperwork.
Will the rent increase over the 25 year agreement?
Yes, an inflation-linked annual rent review guarantees that rent increases by at least CPI each year, ensuring steady income growth.
Why do social housing properties typically have higher prices than market value?
The 25-year management agreement means that the property is commercially valued based on its yield. With a yield up to 11% guaranteed for 25 years, the properties are worth at least the value of the sale price.
Who is the 25 year management agreement with?
The management agreement will be with a reputable housing association who serves as the tenant.
Who is responsible for paying the rent?
The housing association who serves as the tenant is responsible for rent payments. They receive rental funds from the local authority and promptly transfer the payments to the landlord.
What happens if a tenant under the housing association fails to pay rent?
You will receive your rent from the housing association regardless of tenant occupancy or payment status.
What happens at the end of the 25 year management agreement?
Once the contract ends, you have full control over the property. Given the high demand for these properties, you may have the opportunity to negotiate an extension. Alternatively, you can choose to sell, rent it privately, or even move in yourself.
What would the procedure be should the housing association cease trading in relation to existing leases?
If a housing association ceases to trade, the key stakeholder responsible for vulnerable tenants would be required to identify an alternative housing provider. For supported living properties, this responsibility falls to Adult Social Care or Health Commissioners, while for social lets, it lies with the Strategic Housing Authority. These stakeholders have a statutory duty to ensure that vulnerable individuals remain housed in safe, suitable accommodation while continuing to receive assessed statutory care and support. It is their responsibility to source an alternative housing provider, work with them to reassign existing leases, and ensure the continuity of service for tenants.
