The government, local councils and housing associations are under enormous pressure to provide more affordable homes for families. It is estimated that there is a shortage of over 1 million homes in the UK today.
The government, local councils and housing associations are under enormous pressure to provide more affordable homes for families. It is estimated that there is a shortage of over 1 million homes in the UK today. A recent report by ITV, revealing the appalling state of some of the homes, and the horrific living conditions that some people are subject to, has forced these councils and the housing associations to rightly take action now.
In the 2020 March budget, the government announced £12.2bn for the next 5-year affordable homes program (AHP), which is set to run from 2021-2026. There was a further £1bn of support for renters by increasing the level of housing benefits, so that the local housing allowance will cover at least 30% of market rents in the UK. Also in an effort to help reduce this shortfall, a new government-backed scheme was introduced.
Local councils, housing associations and charities are now looking to acquire blocks of properties, houses and apartments, in many areas across the UK on a 25 to 30 year, full repair and insure lease-agreements from major private landlords. This allows the councils and housing associations to increase their housing stock while not having to invest huge amounts of cash upfront helping them to stretch and do more with their limited budgets.
The Sterling Woodrow Offering:
Our senior portfolio managers handle everything whilst you receive your return on investment
High Yield Returns
Generate high returns for up
to 5 years.
Property investments have the opportunity for capital appreciation over time.
This scheme is virtually unknown and that is the way the major property investment companies would like to keep it as it provides a huge opportunity for investors in a heavily funded, government backed, profitable and, as yet, undersaturated sector, with the additional benefit of aiding social housing expansion and helping low income families.
The criteria for getting involved differ with each council, charity or housing association, however they are looking for investors with a large number of properties that will usually be required to be unencumbered.
For more information about Social Housing Investment opportunities contact Sterling Woodrow.