Skip to content

Demand for Social Housing Soars

The number of private properties available for rent has reduced by more than two thirds over the last two years, revealing a shocking shortage that may take an already massively stretched social housing sector to breaking point.

According to new figures compiled by Denton House, the number of properties on the UK private rental market has dropped by 66.9% since August 2020. The research found that just 124,800 properties were available in August 2022 compared to around 377,000 on the same day two years ago.

The shortfall is likely to add further pressure to the already struggling social sector, where massive reductions in social housing and a shortage of privately rented properties has led to well over 1 million households awaiting social homes – and 1 in 10 households being stuck on housing lists for more than 5 years.

Private Landlords Seek Alternatives

The chronic shortage of private rentals is largely being driven by many landlords selling up and quitting the traditional buy-to-let market as a result of ever tightening regulations.

The much anticipated Renters’ Reform Bill and new energy efficiency targets combined with concerns over the rising cost of buy-to-let mortgages is providing too much uncertainty for many.

Considering the planned reforms announced this year, it’s a situation that’s unlikely to improve any time soon and will surely add further fire to the massive social housing shortfall.

Is Now the Time to Invest in Social Housing?

With demand for social housing reaching an all time high, councils and housing associations are looking for new ways to tackle this huge problem.

One solution comes from the private sector, with social housing providers acquiring private properties on long-term leases to rent out to social tenants. 

For landlords quitting buy-to-let and looking for alternatives investment avenues, now could be the ideal time to look at an investment like Avora Capital, who are sourcing and investing in social housing properties on a large scale as part of their £50m property portfolio.

For more information on Avora Capital and the opportunities available in the social housing sector, please give us a call on +44 (0)1708 922 222 or fill out the contact form to request a callback. A member of our team will be more than happy to help and discuss your current position.

Important note: The advice provided in this article is general in nature and does not constitute personal financial advice. If you are unsure whether an investment is right for you, please seek professional advice. If you choose to invest, the value of your investment can both rise and fall so you may get back less than you put in.