FREQUENTLY ASKED
QUESTIONS
INVESTING IN SOCIAL HOUSING
Frequently Asked Questions
What is the Register of social housing providers (PRPSH)
The Regulator for Social Housing in England must maintain a register of social housing providers and make it available for public inspection. Members of the public can view or request extracts of the register by contacting the regulator’s registry unit.
All social housing providers in England are required to be on the register. This includes local authorities, housing associations, housing co-operatives, profit-making organisations and any other form of housing provider.
Social housing means low cost rental accommodation and low cost home ownership accommodation. All local authorities are regulated, including those whose stock is managed by an Arm’s Length Management Organisation (ALMO) or a Tenant Management Organisation (TMO).
Registration criteria
All local authority providers are automatically registered with the social housing regulator.
PRPSHs need to apply to register as a social housing providers and must:
Be English bodies
Be, or intend to be, providers of social housing in England
Satisfy the criteria established by the Regulator
These criteria are based on the provider’s financial situation, its constitution and other arrangements for its management.
Non-profit making organisations are also required to have within their objects the provision of social housing, not-for-profit status and non-distribution of assets to members.
Any organisation that applies to register, is eligible, and meets the registration criteria must be registered.
Governance and financial viability standard
The Governance and financial viability standard requires PRPSHs to ensure effective governance arrangements that deliver their aims and outcomes in an effective, transparent and accountable manner.
PRPSHs must also:
Adhere to all relevant legislation and regulatory requirements
Be accountable to tenants, the social housing regulator and relevant stakeholders
Safeguard taxpayers’ interests and the reputation of the sector
Have an effective risk management and internal controls assurance framework
Manage their resources effectively to ensure viability
(source: shelter housing)
Can I sell the property on at any time? What happens to the lease?
It is your property with full title, registered at the Land Registry, so yes, you are free to sell it on. As the lease is for a predetermined amount of time, the next buyer of the property would be buying with the lease in place with the remaining years on the lease, should you wish to sell on during this time. Two options are open to you. You can sell to another investor or take advantage of the Asset10+ priority buy back scheme.
Can I sell at any time? What are my exit strategies?
You have multiple exit strategies with social housing and can sell at any time. A two month break clause is in place if the owner wishes to exit the agreement with the housing provider. It’s your asset - you can do as you please.
Can I get a buy-to-let mortgage for Social Housing Investing?
Yes, you can mortgage your investment into social housing. We will be happy to provide you with our recommended mortgage partners who will be able to assist you in arranging a mortgage.
However, the very nature of the properties that we source are often “time of the essence” purchases and a mortgage would take too long to arrange to take advantage of these deals.
Are Social Housing Investment properties off-plan?
The majority of properties are typically 2, 3 and 4 bed properties from the UKs established housing. Although we may offer almost complete new stock on occasion.
Won’t the social Housing tenant drive down the value of the property?If an HMO then value will ultimately be predicated on the rental income.
Is my lease protected by the UK government?
You will enter into a lease with an approved government registered social landlord.
Independent entities: They’re not directly owned or controlled by the government.
Government support: However, they receive significant government funding and regulatory oversight. This includes grants for new housing developments, subsidies for social rents, and regulation by bodies like the Regulator of Social Housing.
The Regulator for Social Housing sets both economic and consumer standards for social housing providers and can take action if these are breached.
Government involvement
The government’s involvement in the sector through agencies like the Homes and Communities Agency provides stability and assurance to investors. So, while not directly “government owned” in the sense of being state-owned, housing associations are heavily reliant on government support and operate within a government-defined framework. This makes them key players in delivering affordable housing and plays a crucial role in the UK’s Social Housing market.