Answers to the questions we're asked most often about investing in Specialists Supported Housing.
Specialist Supported Housing (SSH) is accommodation adapted for vulnerable adults, such as those with learning disabilities, mental health needs, or physical disabilities, who require some level of ongoing support to live independently. It is typically let to a regulated care provider or housing association, which in turn houses and supports tenants, with rent funded through the UK Government's Housing Benefit system.
NET yield is the annual rent as a percentage of the purchase price, after costs such as ground rent and service charge (of which SSH freehold properties typically have none). For example, a £150,000 property let at a 12% NET yield generates £18,000 in Year 1 rent.
Leases are structured with an annual, upward-only rent review linked to CPI (the Consumer Price Index) plus a fixed 1% uplift. Our returns calculator uses an assumed average CPI of 3.5%, giving a modelled annual increase of 4.5%, though actual CPI varies year to year and is not guaranteed.
SSH leases are typically structured over 25 years on a full repairing and insuring (FRI) basis, meaning the tenant (care provider) is responsible for repairs, insurance, and upkeep, not the investor.
Yes. SSH properties are sold freehold. There is no leasehold erosion, ground rent, or service charge to factor into your returns.
No investment return is guaranteed. Rent is contracted under the lease with the care provider, and income depends on that provider meeting its obligations and on continued government funding of housing benefit. As with any property investment, capital is at risk and values can fall as well as rise.
Should a care provider cease to trade, the property owner would need to identify an alternative regulated provider to take on the lease. Our team carries out due diligence on every care provider relationship before a property is offered to investors, to help manage this risk.
On the Returns Calculator page, adjust the purchase price and NET yield sliders to match a property you're considering. The calculator shows your projected Year 1 rent, Year 25 rent, and cumulative income over the full 25-year lease, based on your assumed CPI figure.
Get in touch via our contact page with your budget and goals. Our team will talk you through available developments and, if it's a good fit, provide a full information pack and guide you through to completion.