We provide social housing investment opportunities to increase the quantity of high-quality social housing properties in the UK and provide a secure income for our investors.
By combining our in-depth knowledge of the social housing sector, property development experience and partnerships with housing associations to conscious investors, we believe that the companies can source assets that would benefit vulnerable people currently on the social housing waiting list whilst providing strong interest and capital repayments to investors.
We do this by working closely with housing associations which allows us to identify locations within the UK where social housing demand is high, but property prices are low. This creates an opportunity to purchase and develop a high-yield rental portfolio that effectively generates high-income and profitable exits, whilst constantly supplying more quality accommodation for vulnerable tenants.
By focusing on locations with lower average property prices, we intend to help investors develop a portfolio of assets that will generate high rental yields.
What is social housing?
Social housing refers to affordable housing provided by the UK government for individuals and families who require assistance. It is intended to provide accommodation for vulnerable individuals who cannot afford to purchase or rent a typical property.
The purpose of social housing is to ensure that all households in the UK have access to suitable accommodation. It is an alternative to the private rental sector, offering lower rental rates, longer lease terms, and a stable living environment. Social housing is typically organised and managed by local councils, housing associations, registered charities, and social care operators. Tenants of social housing report directly to and pay rent to these organisations, effectively treating them as landlords.
At Yield Investing, our aim is to increase the quantity of high-quality social housing properties provided to registered housing association partners to help the 1.1 million people on the waiting list for affordable housing in the UK.
Who is social housing for?
Social housing in the UK plays a crucial role in supporting vulnerable tenants and addressing their housing needs. Investing in social housing aligns with the growing focus on environmental, social, and governance (ESG) considerations. With many of our investors increasingly interested in projects that have a positive impact on society and meet the sustainability criteria.
Vulnerable Tenant Types
Homelessness
Domestic abuse victims
Asylum seekers/refugees
Physical disability housing
Drug and alcohol rehabilitation
Social Housing Property Investment: How It Works
Social housing in the UK plays a crucial role in supporting vulnerable tenants and addressing their housing needs.
Investing in social housing aligns with the growing focus on environmental, social, and governance (ESG) considerations. With many of our investors increasingly interested in projects that have a positive impact on society and meet the sustainability criteria.
Completed property developments
Our properties are carefully selected from completed developments, eliminating the risks and uncertainties associated with ongoing construction projects.
Secured rental yields
Our properties offer attractive yields of 8-10% NET sourced through the housing association. They also track CPI, so investors have a safe and stable hedge against inflation.
FRI lease (full repairs and insurance)
With our FRI lease, investors are relieved from the burden of property maintenance and repairs. All repairs and insurance matters are handled by the tenant (housing association), further streamlining the investment process.
Long-term commercial tenants
We secure long-term leases with commercial tenants, such as housing associations, which ensure a stable and consistent rental income for our investors. The leases will vary between 5-25 years.
Tenant damage and maintenance cover
Our properties come with tenant damage and maintenance cover, protecting investors from unexpected expenses related to property damage.
Recently refurbished properties
We ensure that our properties meet the highest standards of quality as Is required by the regulation with the housing association lease agreements.
Free property and lettings management
All aspects of managing the property, including tenant placement, rent collection, and property maintenance are taken care off ensuring a hassle-free experience for our investors.
No ground rent or service charges
Our investment properties are free from ground rent or service charges, allowing investors to maximize their rental income without additional costs.
Investment Opportunities
There is a strong investment case created when developing properties for the sole purpose of social housing. The FRI (full repairing and insuring) lease provides the Companies’ with rent assurances, damage/maintenance covered by the housing association, utility costs and council tax covered and all day-to-day operations covered by the housing association. This ensures a lower rent leakage than other residential sectors, which reduces in lower overhead costs for the Companies’.
This means that cash flow is less effected by market conditions, tenant fluctuations/missed rent payments or expensive maintenance costs, meaning we have a more stable income facilitating interest payments to investors. With inflation in the UK at a current high, we are able to forecast a growth in income year by year further benefiting the Companies’.
Long FRI leases with CPI linked rents provided by housing associations are seen as highly secure income investments with large institutional investors. It is often the case that large investors will purchase a substantial portfolio of social housing properties in order to de- risk their portfolio through secured high income and yield, whilst also combatting inflation. Therefore, we see a strong exit opportunity by aggregating social housing assets to hit their minimum investment sizes, operating them with our partners for 2-4 years before selling to realise profits and making capital repayments to investors.
Please see below a table illustration for distribution of social housing funding:
Central Government
Gross rent paid to the local authority
Local Authority
Local authority passes rent onto housing provider
operator Housing Provider
Housing provider keeps a portion of the total rent to operate the property.
Housing provider pays the property owner the full lease rent
Who should invest in social housing?
Investors seeking hands-free solutions
Yield Investing's social housing properties provide a hands-free investment option, making it an excellent fit for individuals who wish to earn passive income without the day-to-day responsibilities of property management. The full repairs and insurance (FRI) lease, along with free property and lettings management services, relieve investors from the burdens of property maintenance and tenant- related issues.
Income-oriented investors
These properties are particularly appealing to investors who prioritize generating a consistent stream of passive income. The properties provide a secure and attractive return on investment, making it an ideal option for those seeking regular cash flow.
Long-term investors
If you have a long-term investment strategy and are looking for stable and reliable rental income, social housing investment properties can be a suitable choice. With leases typically ranging from 5 to 25 years, investors benefit from a predictable income stream over an extended period.
Risk-averse investors
The nature of these properties offers a reduced level of risk compared to other real estate investments. The presence of a long- term commercial tenant, such as a housing association, ensures a reliable rental income, minimizing the potential risks associated with tenant turnover or property vacancies.
Ethically conscious investors
If you value investments that contribute positively to society, social housing properties align with your ethical considerations. By investing in housing for vulnerable adults, you support the well-being and stability of marginalized communities, making a meaningful social impact.
Our Developments
Hartlepool Property Investments
- Secure yields of 9%
- Income generating from day 1
- Full repairs & insurance lease
- Free property & lettings management
Middlesborough Property Investments
- Secure yields of 9%
- Income generating from day 1
- Full repairs & insurance lease
- Free property & lettings management
Durham Property Investments
- Secure yields of 9%
- Income generating from day 1
- Full repairs & insurance lease
- Free property & lettings management
Chat with an advisor
All of our social housing investment opportunities are fully hands-off and our team are ready to source the perfect development for you. Get in touch and speak with an expert advisor today to grow your investment portfolio.
