Originally published January 2021.
With the government under pressure to tackle the UK homes shortage, social housing offers yield opportunities to high-net-worth investors.
As a developer in the North of England dealing in high-volume but relatively inexpensive units, at the start of 2020 we anticipated continuing demand from the same high-net-worth clients and property funds, loosely based on several factors – low unit costs, the Northern Powerhouse, and rental yields that were higher than the overheated South of England. Scroll forward several months and we have unearthed areas of demand that reflect a different landscape of shifting politics and social conditions. That stamp duty holidays and post-lockdown pent-up demand have underpinned prices is well known, but increasingly our attention has turned towards local authority demand for social housing and the subsequent opportunities for funders seeking yield in a seemingly permanent ultra-low interest rate environment.