SOCIAL HOUSING INVESTMENT

Here at NEPI, we are dedicated to fostering thriving communities in the North East of England, with a special focus on social housing investment in the North East.

See our latest social house project below.  A meticulously sourced, refurbished, and leased property for a satisfied client. This 5-year lease to a PLC for social housing is just one example of NEPI’s 150+ successful projects. If you’re seeking 8%+ yields, supported by a trusted UK PLC, reach out to us today.

Our ethos

At NEPI we care about the people and the communities across the North East of England.  We believe that good quality, affordable rental accommodation should be available to all, no matter what their circumstance.  Having your ‘own front door’, which feels like a home, is the foundation to allow people the chance to maximise their potential and improve their lives & those in the areas around them.  We work, in collaboration with others, to create stable, secure, trusting, and supportive environments where people feel they belong.

Our Partners

NEPI partners closely with leading social housing providers who share our commitment to delivering safe, quality homes surpassing government standards. In the last decade, we’ve provided thousands of bed spaces, ranging from one-bedroom flats to large apartment blocks.

If you’re currently involved in supported accommodation – be it a local authority, Community Interest Company (CIC), Registered Provider of social housing, housing association, or charity – we’re here to assist. We specialize in locating property portfolios, apartment blocks, and care homes.  Additionally, we excel in identifying suitable land for eco-friendly, socially-conscious housing development.

Invest in Social Housing

Social housing property investments can offer the predictable, long-term, inflation-linked cash flow that investors seek, whilst delivering positive impacts for society.  Since 2020,  NEPI has sourced and sold over £22million properties and developments to institutions and high-net-worth individuals who have benefited from the stability and length of the investments available in the North East whether these be property portfolios, freehold apartment blocks, or buildings specifically adapted for our clients.

Social housing property investments can offer the predictable, long-term, inflation-linked cash flow that investors seek, whilst delivering positive impacts for society. Since 2020, NEPI has sourced and sold over £22 million properties and developments to institutions and high-net-worth individuals who have benefited from the stability and length of the investments available in the North East whether these be property portfolios, freehold apartment blocks, or buildings specifically adapted for our clients.  NEPI has facilitated investments in social housing in the UK, providing opportunities for investors to contribute to addressing housing needs while generating a steady financial return.

If you are an institution, REIT, social impact fund, family officer, or experienced high net-worth investor and looking to invest in social housing, get in contact to discuss the social housing investment opportunities we currently have.

Property Management & Support Services

Our in-house company, North East Property Management & Lettings, oversees the day-to-day management of over 200 properties that specifically provide public housing across areas such as Newcastle upon Tyne, County Durham Gateshead, Sunderland, Tyne & Wear, Hartlepool & Teesside.  NEPLM ensures the ongoing compliance, safety & standards of our properties.  They are on hand to attend to properties around the clock, allowing our partners to provide the care and support to allow our tenants to thrive.

We provide property management services to various entities across the north, we often advise organisations that playing to each other’s strengths is key. We are experts in social housing asset management and the refurbishment and development of buildings. This allows organisations to concentrate on the care and support of the service users.

Very few aggregators in the this space are taking ownership of projects and offering ‘End to End’ solutions for clients. We pride ourselves on this and welcome conversations about how we can help.

Social Housing

 

Block of Flats

 

Pros and Cons of Investment in Social Housing

There are pros and cons of investing in social housing.  Before we highlight them:

The Upsides of Social Housing Property Investment

Is the social housing sector a worthwhile investment? Despite its drawbacks, the advantages overwhelmingly tip the scales.  Let’s delve into the perks of investing in social housing in the UK:

No Maintenance and Management Costs
Property management, including tenant placement and upkeep, is handled comprehensively by the housing operator, typically a local council or housing association. This relieves landlords of the burdens associated with maintenance and property management, ensuring peace of mind.

Hands-free Property Investments
With the involvement of an operating provider and Full Repairing and Insuring (FRI) lease agreements, landlords of social housing properties enjoy a hands-off investment experience. They’re spared concerns regarding maintenance, damages, rent collection, and tenant management, as the housing association assumes these responsibilities.

High Social Impact
Investing in social housing for supported living presents an opportunity to make a significant societal contribution by providing essential rental accommodation for those unable to afford market rents. This not only fosters familial stability and financial independence but also fosters community cohesion and economic development.

Secure Returns
Social housing investment offers attractive, secure returns, owing to the substantial demand for such properties in the UK. The sector’s fundamental role, coupled with governmental encouragement of investment, underpins its stability and profitability.

Diversification
Incorporating affordable housing into an investment portfolio provides diversification, mitigating volatility associated with other asset types like stocks and shares. As demand for affordable housing escalates, UK investors increasingly turn to this segment, with crowdfunding platforms emerging as viable investment avenues.

FRI Lease Agreements
FRI leases transfer property maintenance responsibilities to tenants, resulting in potential cost savings for landlords. This arrangement distributes risk and ensures stable, predictable income streams, as tenants bear maintenance and repair burdens.

Long-Term Investment
Social housing investments typically require a long-term commitment, offering investors stability and low-risk prospects over an extended period. Investing in high-demand urban areas can yield steady rental income and long-term capital appreciation.

Sustainable and Eco-Friendly
Many social housing projects in the UK prioritize sustainability, incorporating eco-friendly materials and designs. Investors inclined toward socially responsible investments find appeal in supporting developments that minimize environmental impact.

Challenges of Social Housing Property Investment

While the benefits are compelling, it’s crucial to acknowledge the challenges associated with investing in social housing:

Limited Choice of Location
The restricted geographic options for social housing can impact property attractiveness and tenant appeal. Evaluating location suitability in terms of amenities and proximity to essential facilities is critical for investment success.

Renting Restrictions
Social housing lease agreements often prohibit renting properties on the open market, limiting landlord flexibility. However, these agreements guarantee regular and timely rent payments from housing providers.

Legal Costs and Taxes
Acquiring social housing in the UK incurs legal fees and taxes, necessitating careful budget planning. Expenses may include stamp duty, legal fees, and transaction costs.

 

The Addison Act

The Addison Act of 1919 marked a pivotal moment in UK housing history, prioritizing the construction of affordable housing.  This legislation emphasized the responsibility of local councils in providing council homes to house tenants in need.

Council housing became a cornerstone of national housing policy, supported by government funding and public funding. This ensured a steady expansion of the housing stock, aimed at meeting the demand for affordable living spaces.

In recent years, there has been a growing shift towards private finance in housing development.  This has led to an increase in private renting options, offering alternatives to traditional council housing. However, it’s essential to strike a balance to ensure social rents remain accessible to all segments of society.

The lock council, a term referencing local authorities’ commitment to providing secure housing.  It plays a crucial role in maintaining the availability of affordable homes. This system has become a vital component of the national housing strategy.

 

 

Contact Us

Address
North East Property Investment Ltd
11 Riverside Studios
Amethyst Rd
Newcastle Upon Tyne
Tyne and Wear
NE4 7YL

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