Supported living property investment
Find Your Perfect Supported Living Property Investments
Contact an Agent!
Call: 07802 795560
Email: info@slinvestments.uk
Our Listings
24 x apartments remaining
HARWORTH HOUSE
Doncaster
• 6 x Studios • 63 x One Beds • 25 x Two Beds.
15 x apartments remaining
Castleview House Runcorn
Warrington
• 6 x Studios • 63 x One Beds • 25 x Two Beds.
Supported Living PROPERTY INVESTMENT
Why invest in supported living in the UK?
The supported living property investment market is one of the most profitable markets for investors in the UK. According to LaingBuisson’s Homecare and Supported Living UK Market Report, the 2021/22 market value in the UK for supported living was a huge £11.5bn, increasing by 9.1% in the 5 years prior to 2022. The UK is currently experiencing a huge increase in demand for supported living properties, offering a gap in the market for privately owned supported living sites to be let at premium rates under longer-term leases from local authorities throughout the country. Whilst the initial cost of a supported living property can be higher than that of a standard residential property in the same area, the rental yields on offer far outweigh those in the residential market, and as demand for these properties continues to increase, the returns on offer will only grow.
Guaranteed Rent
25 year rental guarantee
Responsibilities
- Rent paid from Day 1
- Rent is paid every month by Housing association, even if there are void
periods - No additional/ on going landlord costs (no ground rent, no service charges,
no council tax, no insurance costs, no maintenance fees, no management
fees) - Cash buyers only due to the rental guarantee period being 25 years
- YOU the investor will be the Legal Owner of the property (can be bought
under an Limited Company or personal name) registered at the Land Registry - Rent is reviewed Annually with an upward only rent review (linked to CPI)
typical increase is 4 5% per year - Buy back Option with the Developer at 3 years with a minimum return of
30% over your initial purchase price. Previous buy
back options have been known to give up to a 70% return over the initial
purchase price
Return on Investment
Purchase Price £180,610
The Buy back must happen WITHIN 3 years
On Buy back you will receive a MINIMUM of 30% uplift on purchase price
- Net guaranteed annual rent at 10% = £18,061 pa
- Rental profit after 3 years = £54,183
- buy back value (30% uplift) = £234,793 (£180,610 + £54,183)
- Potential sale profit at 3 years (30% uplift) = £54,183
- TOTAL PROFIT = rent received up to buy back + MINIMUM £54,183
Buy back on a Typical 70% uplift value:
- Net guaranteed annual rent at 10% = £18,061 pa
- Rental profit after 3 years = £54,183
- buy back return (@70% uplift) = £307,037 (£180,610 + £126,427)
- Minimum 30% of uplift to YOU = £234,793 (£180,610 +£54,183)
- Remaining 40% of uplift split 50/50 with the developer = £36,122 each
- Total uplift profit TO YOU= £90,305 (£54,183 + £36,122)
- TOTAL RETURN = £180,610 + £90,305 = £270,915 The buy back will occur within 3 years, in the meantime You will enjoy receiving the 10% net rent every month on the 1st of each month with any bills paid for by the housing association
What is the rental yield?
- The net rental yield on this particular investment is 10%, so on a purchase price of £180,610, the annual rent is £18,061.
What is the buy back option? - Once you have bought your investment property, there is an option for the company to re-sell this development in an aggregation deal to an institutional investor, e.g. A pension fund. These pension funds typically purchase a number of such blocks as large investments with aggregate transactions of between £25 – £50 million.
- The company will ensure that the aggregation is the most profitable outcome for all parties. If the buy back option is triggered, you, the investor, will be guaranteed a sale price of at least 30% above what you bought it for. Any amount over the 30% uplift
value will be split equally between you, and the company. - If the buy back is not triggered, you will continue to receive 10% net rental yield as set out in the 25 year management agreement. You will also be able to transfer, sell, or mortgage your apartment.
Yeild & Buy back option
How do I know I will receive the 10% yield?
- You, the investor, will enter into a 25 year agreement with the Housing Association, who guarantee a rent starting at 10% yield. This rent is reviewed on an upward only annual basis linked to inflation, +1% and so your rent will increase every year.
Are there any hidden costs? - There are NO hidden or extra costs. All ongoing costs are paid for by the local authority (including, service charges, ground rents, insurance, bills, council tax, repairs and operating costs.