AXXCO.

LIMITED AVAILABILITY

Social Housing

Sourcing & Development

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Investment type

Fully Managed
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Locations avalaible

Various
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Property sizes (beds)

1 - 5+
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Purchase type

Cash or Mortgage
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Est. Returns

9% - 13% Net Yield

Availability

LIMITED

Guide price

£
80,000 - £180,000
Investment consultation

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Social housing leases provide secure and assured income for investors.

How Our Social Housing Sourcing  & Development model Works

At Axxco, we're dedicated to sourcing and refurbishing properties that serve as vital housing for vulnerable tenants. Our process ensures every property we select meets stringent criteria, making them ideal for social housing. We work closely with leading housing providers to tailer each property, carry out all necessary refurbishments with our in-house build teams, and bring them up to official regulatory standard. Investors are integral to this process, purchasing properties directly and benefiting from a direct lease agreement with major, government-funded housing providers.

Social Housing Investment offer:

The investment offer is a guaranteed rent lease, with no void periods and all maintenance paid for. The rental returns vary, depending on what the property is being sold for and what rental amount is agreed, but generally we accomplish from 9% to 13%+ net yield for 5 to 10 years.

What's included?

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A 7-year lease with an FTSE 250 company, with an option to renew

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Blue Chip Tenants

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Day-to-day maintenance and repairs undertaken at no cost to the landlord

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Guaranteed Rent (paid monthly by BACS when you hand over the keys)

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Full HMO Management

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Administration of licenses and certification administered by our team of experts

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Monthly property inspections

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Council Tax and utilities paid

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No void properties

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No Management Fees. No Legal fees. No registration fees. No set-up fees

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No rent arrears or debt collection

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All our properties are managed by in-house Housing and Maintenance Officers, supported by a team of administrators.

Investor Benefits with Axxco

  • Complete Ownership: As an investor, you hold the title deed - the property is entirely yours.
  • Direct Agreements: Forge direct lease agreements with top-tier housing providers.
  • Secure and Profitable: Invest in a high-yielding, asset-backed opportunity with no void periods.
  • Social Impact: Play a crucial role in providing quality housing to those in need.

Social housing is a term coined to describe the affordable housing made available by the government for those on who need it. This lower-cost accommodation aims to ensure that all households in the UK are provided for, despite being unable to afford to buy or rent a standard property.

This type of housing was established as an alternative to the private rental sector, offering cheaper rent prices, long-term tenancies and a stable place to live. Social housing is generally provided by local councils, housing associations, registered charities and social care operators.

A social tenant directly reports to and pays rent to the organisation, acting as a landlord to the property. In order to determine the rental costs of properties in each area, the average local income is used to calculate the rent price fairly. Unlike residential property in the private rental sector, social housing is not intended to generate profits.

Instead, this provision of housing is put in place to reduce homelessness, help other vulnerable members of the public and tackle the housing crisis issue in the UK.

Property Sourcing

Our investment journey begins with meticulously sourcing properties on the open market. We focus on finding locations ideal for housing vulnerable tenants, ensuring each property meets our stringent criteria for social housing. This process is crucial in identifying properties that not only serve a community need but also hold strong investment potential.

Collaboration with Housing Providers

After selecting a property, we collaborate with housing providers to determine the necessary refurbishments. This step involves drafting a letter of intent and pre-registering the property, ensuring it is upgraded to meet the high standards required for social housing.

Investor Engagement

We then seek investors for direct property purchase, offering a comprehensive package that includes a lease agreement and detailed investment information. This phase is marked by transparency, providing investors with all the data needed to understand the investment's scope and potential.

Post-Purchase Progress

Once an investor acquires the property, we initiate the refurbishment work with our expert in-house build teams. Our focus is on ensuring high-quality refurbishments, and upon completion we handover to the investor, step out of the equation and they begin receiving regular rental income from the housing provider, marking the start of their financial returns, with the property and rental agreement directly in their own name.

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Those with disabilities or medical needs
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Single parents
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Elderly people
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Those currently living in poor or unsanitary living conditions
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Young families on low incomes with dependent children
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Refugees, migrants or asylum seekers

At Axxco, we offer more than just investment opportunities; we provide the assurance of secure, government-backed partnerships. Our collaborations are exclusively with top-tier contractors, handpicked by the British Government in 2019 and recognised as leading FTSE 250 companies. This focus ensures your investment is with the most reliable providers in the social housing market. Furthermore, our model is distinguished by its directness, avoiding reliance on joint-funds or third-party management companies. This approach not only simplifies your investment but also enhances its security, making it one of the safest in the market. With Axxco, you invest directly, confidently, and with a clear impact.

At Axxco, we facilitate a fully packaged, high-yielding, asset-backed investment in social housing. Our role is to connect investors with what we believe is the safest and most impactful type of social housing investment, backed by robust agreements and a commitment to community welfare

Download the brochure

Download our complete information pack today

Guide Price

£80,000 - £180,000

Purchase type

Cash or Mortage

Estimated Returns

9 - 13%+ Net Yield

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UK Social Housing High Yield Property Investments

What to expect

After enquiring, one of our Investment Specialists will reach out to get in touch with you providing a detailed consultation on the investment, showcasing options and accessing your personal situation.

Social Housing Investing Frequently Asked Questions

Everything you need to know about investing with Axxco.

Will a social housing investment require hands-on management?

We get asked this question quite a lot and we offer our investors two options.

Before we outline these options, it must be said that after 7 years of being involved in this sector, we would generally say that you would not require management.

We are certainly not helping ourselves here by potentially losing revenue, but in general terms and for what we’ve seen, there is not in general, a need to get this type of investment managed. However, for every 4 properties where nothing ever goes wrong, there’s always 1 case where attention is required. That is just the nature of the way things work and we usually see things requiring attention at the most inconvenient of times i.e. when it snows, during Christmas, during bank holidays and so on. So, with these two considerations in mind, we offer two options.

Managed – if you live far away from your proposed investment, then yes, we would recommend that you get us to manage the property. The choice is wholly and completely yours, but if you are unable to get to the property or to manage local tradesmen, then you need something to take care of this when things go wrong.

Unmanaged – we would say that if you live within 30 kilometers and have experience in managing your own portfolio of properties, then there really isn’t a need to use us as your property managers.

Do you offer collective investment schemes in Social Housing?

Recently there has been an explosion in the popularity of collective investment schemes in social housing. These schemes are almost always unregulated and packaged up and marketed as standard property investments at a low entry price point e.g £20,000-£30,000 with fixed returns. As the security of investors funds is our number one priority we do not endorse and would never sell a collective investment scheme due to the many inherent risks involved.

Can I sell the property on at any time? What happens to the 5 or 7 year lease?

It would be your property with full title, registered at the Land Registry, so yes, feel free to keep hold of it or sell it on. The question is still valid however – since the lease is for a predetermined amount of time, the next buyer of the property would be encumbered with the remaining years on the lease, so it is obvious that should you wish to sell on during this time, the only buyer that you could sell it to would be an investor.

Please note, that the rents would be indexlinked and you would see an increase in rent over the lease period in line with inflation, so you could technically sell it on for the same yield that you bought it at (but at a higher price), but again, this is speculation. Once the 3, 5 or 7 years are up, then yes, your options to sell it on would be opened up to both homeowners and investors.

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?

We advise that you can absolutely mortgage your investment into social housing, although we do find lenders have more stringent criteria in comparison to standard buy-to-let mortgages. In any case we will be happy to provide you with our recommended mortgage partners who will be able to assist you at any point.

Are Social Housing Investment properties off-plan?

All the properties are simple 2, 3 and 4 bed terraced properties that have typically been in existence for over 50 years. New build houses tend to be avoided as they are usually smaller, carry higher ground rents and are located in postcodes that the government backed scheme does not operate in.

Does Social investment require a different mindset?

The key thing to stress and what we have continued to stress in the last few years is that social housing tenants are not for everyone. They definitely add to the diversification of an investment portfolio, but it requires a certain type of investor to truly benefit from the product. First and foremost, it sits very well with investors who understand social tenants are vulnerable groups that need support and protection.

Do you offer Rent-to-Rent Social Housing Investments?

We currently do not offer rent-to-rent investments under any circumstances due to the unsecured nature of the investment. Rent-to-rent investments are essentially unsecured loans offering very little protection to no protection to the investor, they are also subject to risks such as legal and framework changes and as such we would not be able to confidently let our investors invest in such a product.

Will an social housing investment require hands on management?

Our exclusive focus on high-value networking and insider access to investment deals sets us apart. We offer a unique blend of practical learning sessions, expert panels, and personalised networking opportunities, all aimed at providing actionable insights and direct access to industry leaders.

Won’t the social Housing tenant drive down the value of the property?

This is a valid question and we understand the concern. The bottom line is that the properties that have been acquired, refurbished and let out to these tenants are in areas that are in the lower to mid-end of town properties. If you are the type of landlord who believes letting out properties to working professionals is the only way, then we ask you to not enquire or take this further. We have many landlords who that understand letting out to well-managed DSS, LHA and social housing tenants are, in many cases, better than letting to professional working tenants, so we would be happy to offer these properties to them.

Are housing associations government-backed?

It's not quite that simple!
Housing associations in the UK have a unique position:

Independent entities: They're not directly owned or controlled by the government. They operate as non-profit organisations with their own boards and management.

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.

Mixed funding: Housing associations also raise funds through private loans, rent income, and selling some properties.

-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.

Who invests in Social Housing?

Social Housing investment is ideal for:

Investors seeking predictable cash flow and long-term stability.

Landlords tired of the hassle of traditional property management.

Individuals with a higher risk tolerance due to the longer lease terms.

Investors who value both financial gain and social impact.

Talk with a Social Housing expert