In March 2023, Baroness Warwick of Undercliffe posed a critical question in the House of Lords about providing more supported housing, highlighting its impact on homelessness prevention, health, and wellbeing.
This parliamentary debate underscores what many property investors are discovering: investments in supported housing deliver not just financial returns, but profound social benefits that transform lives and communities.
A solution for society's most vulnerable
Supported housing serves some of society's most vulnerable individuals – from older people and those with learning disabilities to individuals recovering from substance dependence and families fleeing domestic abuse. This specialised accommodation, combined with appropriate support services, enables people to live as independently as possible while receiving the care they need.
As the House of Lords debate highlighted, the social impact of these investments extends far beyond simply providing a roof over someone's head. Research commissioned by the National Housing Federation found that "good quality supported housing has a significant positive impact on its residents' health, wellbeing and sense of social connection" – outcomes that enrich lives and reduce pressure on public services.
Preventing homelessness and reducing public costs
One of the most compelling aspects of supported housing is its role in preventing homelessness. The National Housing Federation's research revealed that without supported housing, there would be an increase in core homelessness of around 41,000 people, with a further 30,000 at significant risk of future homelessness.
The financial implications are substantial. The cost to the public purse of long-term homelessness has been estimated at over £40,000 per person per year. By investing in supported housing, property investors are not only creating sustainable income streams for themselves but are also helping to alleviate a substantial financial burden on society.
Addressing complex needs through specialised housing
Supported housing residents often face multiple challenges. Nine out of ten have at least one health condition or disability, including substance misuse, mental ill-health, learning disabilities, or physical conditions. Half experience more than one of these conditions simultaneously.
These complex needs require specialised housing solutions – from purpose-designed accommodation for older individuals to safe refuges for those fleeing domestic abuse. Property investors who understand these varied requirements can make targeted investments that meet specific community needs, creating environments where residents can truly thrive.
Supporting government initiatives and targets
The government has recognised the importance of supported housing through its affordable homes programme, which runs from 2021 to 2026. Ten percent of the 130,000 new affordable homes targeted by the Department for Levelling Up, Housing and Communities are intended to be supported housing.
However, meeting these targets has proved challenging. The House of Commons Public Accounts Committee has urged the government to understand and quantify the savings that building more supported homes could make to local and central government spending on adult social care – highlighting the economic as well as social benefits of these investments.
Quality and standards: Building a better future
Quality is paramount in supported housing. In October 2020, the government published a national statement of expectations for the supported housing sector, setting out guidelines on "what good looks like." This focus on quality ensures that investments in supported housing deliver genuine benefits to residents rather than simply meeting minimum standards.
Recent government initiatives, including the £20 million supported housing improvement programme launched in 2022, demonstrate a commitment to raising standards across the sector. For ethical investors, this renewed focus on quality presents an opportunity to develop properties that truly enhance residents' lives while meeting increasingly robust regulatory requirements.
The investment opportunity with purpose
For property investors looking to make a difference, supported housing offers a unique proposition. These investments can generate stable, long-term returns while directly contributing to solutions for some of society's most pressing challenges.
Housing associations currently provide 76% of supported homes in England, with local authorities providing 14%, and charities and voluntary organisations providing 6%. The remaining 4% comes from other providers – including private investors who see both the financial and social value in this sector.
Beyond financial returns: Creating social value
The House of Lords debate highlighted what many investors in this sector have already discovered: the rewards of supported housing investment extend far beyond financial returns. By providing appropriate accommodation for vulnerable individuals, investors become part of a solution that:
As the parliamentary debate emphasised, the case for providing more supported housing is compelling. For property investors with a social conscience, this presents a rare opportunity to align financial goals with meaningful social impact.
In a world increasingly focused on ethical investment, supported housing stands out as an area where private capital can make a tangible difference to individual lives and broader society. By investing in this sector, property investors aren't just building portfolios – they're helping to build a more inclusive, supportive society where vulnerable individuals can live with dignity and independence.
The message from the House of Lords is clear: supported housing delivers significant benefits for homelessness prevention, health, and wellbeing. For investors willing to enter this specialised market, the opportunity to generate both financial returns and profound social impact has never been more apparent.
If you want to read the full original report, you will find it here:
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