Housing Association Deals

Housing association deals are becoming more popular. This blog will help you understand what a housing association deal is, what the advantages are and what the disadvantages are.

What is a housing association deal?

You find a suitable property and refurbish it to fit the local housing association's requirements. This property could range from a single let to a huge block of 50 studio apartments. You then lease the property to a housing association, this is normally done on a tenancy agreement or a lease. Typically this is done on a long-term contract, sometimes as long as 7 years!

What are the Advantages?

1) Guaranteed rent- It's great if you're looking to achieve a high yield with no voids.

2) Long term- The agreement can last as long as 7 years.

3) No management involved- The housing association company puts their own tenants in place and manages them.

These 3 advantages make the deals more passive and hands off than your standard property investment.

What are the Disadvantages

1) Set up costs- Housing associations have set property requirements that the property will have to meet.

2) Dealing with the housing association- You have to do your research and find a good association that you trust.

3) Lending- It's harder to evict vulnerable tenants which will reduce the number of lenders available.

To conclude, we have done a good number of housing association deals in Greater Manchester, Liverpool, Swindon, Gloucester, Luton, and Bedford. These deals do take more time and effort to arrange but often achieve a higher rent and give investors a "hands-off" asset. If you have any questions please do get in touch.

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