Supported living is a growing part of the UK property market that lets you invest in developments that really matter – providing safe, supportive homes for people who need extra help to live independently. This ethical approach to investment means you’re helping to shape people’s futures while adding to your own portfolio.
Who uses supported living properties?
Supported living accommodation (also known as assisted living) is designed for vulnerable adults who need regular support but want to maintain their independence rather than move into residential care.
Typically, 9 out of 10 residents have at least one health condition or disability, with half experiencing multiple conditions. These include mental health issues, learning disabilities, autism spectrum disorders, physical disabilities, and substance recovery support needs.
How does the supported housing model work?
The supported living model clearly divides property ownership and care provision. This separation means residents benefit from professional support while having standard tenant rights.
The accommodation can range from shared houses where 2-3 residents with similar support needs live together, to individual apartments for more independent living. These residential properties usually have high occupancy rates and stable tenancies, which are also backed by government funding and operate under clear quality standards.
Professional care teams take care of all of the operational aspects, providing thorough support matched to each resident’s needs, whether that is assistance with daily tasks and personal care to help with work, education, and community engagement. Each property is also adapted to suit each individual’s needs, for example, accessible bathrooms, emergency call systems, and secure entry points.
Supported living services are an essential part of the UK’s social care infrastructure and make a real difference in communities by reducing pressure on local health services, supporting families, and helping create more inclusive neighbourhoods.
How many supported living properties are there in the UK?
Tracking the exact number of supported living properties in the UK has historically been challenging, as local authorities weren’t required to maintain detailed records. The Supported Housing (Regulatory Oversight) Act 2023 now requires local authorities to assess and strategically plan for supported housing in their regions, so this data should become more accurate.
Recent estimates from 2023 reveal the impressive scale of this sector: 509,873 supported living units currently provide independent living opportunities for over half a million people across the UK. To put this into financial perspective, the sector receives substantial funding through Housing Benefit, with annual investment exceeding £3.5 billion. In England alone, £2.1 billion supports elderly residents, while £1.4 billion helps working-age individuals maintain their independence in supported accommodation.
Why Assisted Living Investments are a Great Choice for Property Investors
Looking for an investment that makes a real difference while delivering reliable returns? Supported living properties offer exactly that, preventing homelessness for over 41,000 people and protecting another 30,000 from future risk, while providing investors with sustainable income opportunities.
When you invest in supported living accommodation, you’re not only building your portfolio, but you’re helping create safe, stable homes that transform lives and strengthen communities.
Quick Guide: Supported Living Investment Opportunities
| Investment Aspect | Current Position | 2040 Projection* |
| Market Size | 509,873 units | 677,202 units |
| Growth Potential | Baseline | +33% |
| Social Impact | Significant | Expanding |
* Data taken from National Housing Federation’s Supported Housing in England: Estimating the need and costs to 2040 report.
1. There’s a Huge Demand for Assisted Living Properties
The UK’s population is changing dramatically. By 2066, more than one in four people will be aged 65 or over, making older people the largest and fastest-growing age group in the country. This demographic shift means we need to reshape how we think about housing.
The question of how much supported housing will the UK need by 2040 is becoming increasingly urgent. The National Housing Federation (NHF) reports that the UK needs 167,329 new supported living units by 2040, with over 100,000 of these needed much sooner by 2030. This tells us that we need to act quickly to meet this growing demand.
Most of these homes will be for older residents, who will make up about three-quarters of people needing supported living. The remaining quarter will go to working-age adults who need extra help to live independently. While some of these properties will be for short-term stays, the majority will need to be permanent homes where people can settle and build their lives.
The NHF acknowledges that these estimates are based on what’s been commissioned in the past rather than forecasted needs. When they take into account poverty levels and the prevalence of support needs in the population, they estimate the real number could be much higher at around 1.7 million people by 2040.
For investors, this means one thing: there’s a growing gap between the number of supported living properties available and the number we’ll need in the future.
2. Flexible Market Entry Options Available for Investors
Property investors can invest in supported living in a variety of ways:
Buy Existing Properties
Purchase ready-to-run supported living properties that come with professional management services already in place. You start earning rental income immediately while experienced managers handle all the day-to-day operations.
Partner with Established Developers
Join in creating new developments of supported living homes for individuals in areas of high demand. This option often leads to better returns while helping build much-needed housing, as you’ll be involved from earlier in the process.
Team Up With Care Experts
Connect with experienced care providers who know how to run successful supported living properties. They bring the expertise in resident care and property management while you provide the investment, creating a partnership that works for everyone.
3. Secure Your Financial Future
Supported living is an ethical property investment choice, as it gives reliable financial returns whilst making a meaningful social impact. When you invest in these properties, you’re backing community-centred services that make economic sense for both investors and the government.
These homes provide vital stability that helps people thrive. The government recognises the tremendous value of preventing housing crises before they occur, with research showing that supported living is more cost-effective than emergency intervention services. This practical, prevention-focused approach means government funding through housing benefits remains consistently strong, giving you dependable rental income you can count on year after year.
For investors seeking high-yield property investment opportunities, supported living properties consistently outperform standard residential assets, with investors seeing around 8% NET yields in established areas. What makes these returns even more appealing is the security that long-term agreements and reliable housing benefit payments bring.
4. A ‘Hands-Off’ Property Investment
Investing in supported living is ideal if you want to invest without the commitment of traditional property management. Expert property teams will manage everything on your behalf daily, from maintenance and resident support to complex regulations and paperwork. It’s a straightforward way to grow your portfolio while making a positive impact.
Partner with Yield Investing to Invest in Supported Living
When you choose to invest with Yield Investing, you gain direct access to carefully vetted supported living opportunities. We’ve spent years building our expertise in this special corner of the property market, so we know what makes a great investment opportunity – both for your returns and for the residents who’ll call these properties home.
Take the first step toward securing your position in this growing market by contacting our property advisors today.
