The Best Areas To Invest In For Social Housing

We may be in a recession, but there are still plenty of investment opportunities to be had, particularly in the property market. One such area of interest is social housing, which can deliver substantial rewards when approached correctly.

What Is Social Housing?

Social housing is property that is provided by either local council authorities or housing associations, which are not-for-profit enterprises that focus on buying, letting, and managing such homes. One key factor for social housing is that the rents charged are in line with local income levels, making them an affordable option for tenants. Rents are paid directly to the council or housing association which owns the property. This model offers additional benefits such as security and stability for tenants over the long term. Such housing is also subject to stringent quality control, meaning that social housing properties are frequently better insulated, more energy efficient, and include safety features, such as smoke alarms. Quality is often more consistent than private lets.

An Investment Opportunity

Reaching out to local councils and housing authorities is, therefore, a good first step in making an investment in social housing. The other crucial factor, as is true for all areas of the property market, is to choose the location with care. A great starting point is to research regions where plenty of development is already taking place, as this will point to a buoyant rental market. Look at the breakdown of the types of renters in the area, too: there will be little merit in investing in social housing in an area where most renters are higher-paid professionals looking for private lets. Cities and larger urban areas tend to be a good option, particularly where the stock of social housing has perhaps not kept up with demand. Manchester and its surrounding towns, such as Oldham, have already proved fertile ground for those looking to invest in this type of property.

If you wish to narrow your search area still further, taking a closer look at a job centre in the location in which you’re interested can be a very good use of your time. Look at the rental market in the immediate vicinity of the job centre to learn about the types of property that are most in demand in this area, as well as the types of renter. Ideally, you will need a good proportion of renters who will need affordable housing, such as those claiming state benefits or using other social projects and initiatives, such as food banks or street teams.

Invest Wisely

Again, reaching out to people who know the needs of the local population is the surest way to invest your money wisely. Talking to those involved in local authority housing and housing associations, in addition to any charities or social enterprises operating in your chosen location, will help to clarify where you can make the best contribution. It may be that single bedroom or studio accommodation is in highest demand, or perhaps there is a real shortage of homes for larger family groups. Find out before you draw up any plans in order to direct your investment in the right direction for your chosen community.

A Great Way To Help

Right now, a housing emergency has been declared in the UK, so investing in social housing can be a wonderful way to help vulnerable people and communities. In England alone, there are more than a million households waiting for affordable social housing to become available for them [2]. With so many regions facing a shortage of good quality, stable homes to rent at an affordable price point, adding to the stock of social housing will likely be a great investment, wherever you decide to focus your efforts.

Why not contact Solid Property Deals today, to gain the best insights and information on all aspects of social housing investments.

Resources:

[1] https://england.shelter.org.uk/support_us/campaigns/what_is_social_housing

[2] https://england.shelter.org.uk/support_us/campaigns/social_housing_deficit