Supported living is a rapidly growing sector within the UK property market, offering landlords a unique opportunity to generate stable, long-term income while providing housing for social housing and vulnerable tenants. As a lender that specialises in supported living, we can help you to understand this niche, enabling you to serve clients looking to diversify their portfolios or enter socially impactful property investment.
This guide outlines what supported living is, who it serves, and how you can help your clients access the right finance solutions.
What is supported living?
Supported living is a housing model that combines accommodation with care and support services. It helps individuals live independently while receiving the assistance they need. These properties are ideal for vulnerable tenants who may not be suited to traditional rental housing.
Who benefits from supported living?
Supported Living properties are suitable for a range of people who require personalised support services. They could be:
- People with disabilities
- People with learning disabilities
- People with mental health needs
- Recovering alcohol or drug addicts
- People at risk of homelessness
- Elderly people
- People with other complex needs
Demand for supported living properties
According to the National Housing Federation, the UK will need 167,329 additional supported housing units by 2040 – a 33% increase from 509,873 in 2023 to 677,202. This rising demand presents a significant opportunity for landlords and property investors.
As reported by National Housing Federation.
How landlords are entering the supported living market
Many landlords are now considering diversifying their portfolios by converting some of their buy-to-let properties into homes suitable for supported housing. This shift is often driven by increasing legislative pressures and higher taxation in the traditional rental market.
Partnering with a housing association or care provider
Most supported living homes are arranged and managed by care providers or housing associations. These organisations often lease properties from private landlords on long-term agreements, offering:
- Stable, guaranteed income (lease can range from 3-7 years, which means the rent is guaranteed for this duration)
- Reduced void periods
- Property maintenance managed by the provider, this provides peace of mind that all the property will be maintained during the lease period.
Mortgages for supported living properties
Financing supported living properties requires a specialist approach. Traditional lenders may not accommodate the unique lease structures or tenant profiles involved. Most lenders also do not understand the model of 24 hour support or carers working at the properties throughout the day.
That’s where Quantum Mortgages comes in.
We are an intermediary-only lender with a deep understanding of the supported living sector. Our lending criteria is designed to support advisers placing complex cases for landlords and investors working with care providers and housing associations.
What sets us apart?
- We accept tenancies with 24/7 live in carers
- We accept tenancies with tenants under the age of 18 years old
- We accept corporate leases up to 7 years with no break clause
- In fact, we accept corporate leases with any social and vulnerable tenant provider with no insistence that firm needs to be CQC registered
- We can also consider contracts for longer than 7 years
- Acceptance of residential properties with C3, C4, or Sui Generis use classes
- We will not place the case on a higher rate because the property has 24 hour carers
- We work closely with social housing landlords to understand the need for finance within this market
Conveyancing flexibility
Despite our specialist criteria, we do not restrict conveyancing. Any legal firm with a minimum of three SRA-regulated managers can act on a dual representation basis for all cases.
Let’s work together
At Quantum Mortgages, we’re committed to helping intermediaries place complex cases with confidence. Our flexible lending criteria, deep understanding of the supported living market, and hands-on approach make us the ideal partner for brokers working with landlords and investors in this space.
If you have a client looking to finance a supported living property – or you’re exploring options for a more specialist case – get in touch with our team today.
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