Can I use my property for Social Housing?
Updated: Jun 21, 2020
Often, this switch is from failed HMO investments as the necessary infrastructure such as interlink smoke alarms and fire doors are already in place.
Due to the current climate and a large oversupply in HMO stock across Yorkshire and many other parts of the uk, many investors are struggling to fill their HMO rooms. Combine this with a slight decline in demand due to rising rents ( young families can often rent a house for close to the cost of a room), the cost of utilities, maintenance and management, net figures often come closer to single let yields.
This is where the SH model becomes attractive to investors as it often sits between single let and HMO net yields. The Registered Providers we are working with are all government backed providers meaning that the rent is guaranteed for the lease period, regardless of voids. The RP would also take on the utilities, council tax and sometimes maintenance ( depending on lease terms). This is perfect for an investor as the only expense would be a boots-on-the-Ground management agent.
As long as the SH model does not void your lender's policy, it will be very easy to make the switch. There is an enormous demand for housing across the uk with lots of RP's ready to lease your property from you. With that said, it is often hard to speak with the relevant parties involved with procurement. This is where businesses with established relationships can help get the leases in place.
Feel free to contact us for more information on how you can begin to diversify your portfolio using a social housing model.