While the situation for traditional buy-to-let investors is somewhat challenging against a backdrop of soaring costs and increasingly complex legislation, there are still plenty of alternative opportunities out there for savvy investors to capitalise on alternative sectors of the property market.
One such area we believe offers a prime opportunity and which makes up a critical part of the Avora Capital asset portfolio is social housing, where there is unprecedented demand for homes and a severe shortage of good quality properties following years of underinvestment.
For investors, we believe the social housing sector offers opportunities to generate strong returns while also helping reduce the UK’s social housing deficit and aiding social housing expansion.
The Social Housing Crisis
The UK has a severe social housing shortage, with housing providers under huge pressure to tackle the problem and provide good quality homes for families across the country.
Indeed, social housing has been in the news a lot over the last few years, making headlines again this month following the publishing of a review commissioned by the National Housing Federation, which once more exposed the “shockingly poor” conditions some social tenants are being forced to live in.
In a bid to tackle this problem, councils and housing associations are turning to the private sector to help with the housing shortfall, acquiring properties on long 25 or 30 year leases from major landlords to let to social tenants via a little known government-backed scheme.
For social housing providers, doing this allows them to increase their range of housing stock without investing huge amounts of cash upfront - and acquiring assets much quicker than may otherwise be possible. For investors, it offers a lucrative opportunity to generate ongoing returns while also helping play a role in solving the housing crisis.
How Can I Invest in Social Housing?
While each social housing provider sets different criteria, they are looking for investors with a large portfolio of properties that will also usually need to be unencumbered.
At Avora Capital, we invest heavily in the social housing sector, purchasing properties in prime locations on a 25 or 30 year index linked lease with a government-backed housing association or charity.
For private investors, we offer the opportunity to purchase shares in our diverse portfolio of income-producing assets. Our approach is based around building a disciplined portfolio that is backed by rigorous research and our extensive market expertise, always aiming to increase the return on investment and designed to deliver capital appreciation.
There are many advantages to purchasing shares in our property portfolio, offering the chance to capitalise on opportunities in the property market without many of the drawbacks associated with owning and maintaining properties yourself as a landlord.
Considering the soaring cost of borrowing, rising maintenance costs and increasing legislation all affecting traditional buy-to-let landlords at this time, many investors appreciate a more ‘hands off’ approach to property investment.
As well as offering the chance to invest in sectors that may otherwise be out of bounds for smaller private investors, Avora Capital offers a number of key advantages for investors, including:
- No maintenance costs - it’s a fully managed investment
- Regular quarterly payments
- No management fees
- No stamp duty to pay
Interested in finding out more about social housing investment and Avora Capital? Please don’t hesitate to contact us today using the form below.
Important note: The information provided in this article is general in nature and does not constitute personal financial advice. If you are unsure whether an investment is right for you, please seek professional advice. If you choose to invest, the value of your investment can both rise and fall so you may get back less than you put in.