Supported accommodation is a growing sector of the UK property market and a strategy that we’re really keen on here at Brentor.
Why?
Because it can be a very lucrative investment opportunity for those seeking higher rental yields and stable returns… Which, if you’ve been here for a while, you’ll know that’s what we specialise in!
Is supported accommodation a good strategy for you?
Here are some reasons why it might be a great way to diversify your portfolio.
High Rental Yields
Supported accommodation properties typically have higher rental yields compared to standard residential properties. This is due to the Government's commitment to providing affordable housing options for individuals with specific care needs, resulting in a strong demand for this type of accommodation.
Stability of Rental Income
Supported accommodation tenants are generally more likely to stay in their properties for extended periods, reducing the risk of tenant turnover and associated void periods. This stability of rental income could provide you with a reliable stream of cash flow.
Government Support
The UK government recognises the importance of supported accommodation and provides various funding schemes and tax breaks to encourage investment in this sector. These incentives can lower the upfront costs and increase the overall returns for investors. What’s not to love?!
Diversity
Supported accommodation could be a really great way of diversifying your portfolio. It reduces reliance on the performance of the mainstream rental market which can really help you to manage risk and enhance overall returns.
Feel good investing!
Investing in supported accommodation goes beyond financial gains and provides a positive social impact. It helps individuals with care needs live independently and who wouldn’t want to support that?
No management headache!
Supported accommodation schemes often operate under professional management companies, which handle the tenant selection, tenancy agreements, and overall property management tasks... So you don’t have to! Imagine getting higher returns for less work?? Yep, we told you it was a good one! It can allow you to focus on other aspects of your investment strategy.
The demand for supported accommodation is likely to remain strong and we’re here for anything with:
✔️ High rental yields
✔️ Less hard work
✔️ Spreading risk
✔️ Tax benefits
✔️ Feel good investing!
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