Three reasons to get involved in supported living

Supported living is a big – and growing – opportunity for developers. But it’s one you might not have considered.

Lisa Brown and Mark Bowen from Supported Living Gateway shared their experience working in this sector during our recent webinar.

Below, we breakdown their insights into why supported living could be a smart play for your development.

What is supported living?

Supported living is the housing provided to a tenant who has long-term support requirements (such as life-long physical or mental health needs).

As a property owner, you don’t have direct contact with the tenant. You have a lease agreement with a registered provider and the care is then provided separate from the tenancy. This is where it differs from a residential care setting, as the care and the tenancy are not intertwined. 

Many local authorities opt for this supported living model as it is more flexible for tenants requiring long-term support. 

Why you should get involved in supported living

• Less stress with long-term leases

Supported living leases tend to fall within the 3-10 years range, and can sometimes be even longer. 

As a result, it tends to be less stressful and costly than traditional residential tenancies as you’re dealing with tenant changeovers less often. 

Also as the property owner, you’re not responsible for void periods within this time – making it appealing for landlords who want to take a less hands-on approach. 

“Anyone who’s been a landlord, even for a small amount of time, will understand, actually, that those void periods pretty quickly eat into your profits each month.” – Lisa Brown 

The rent for these leases varies from agreement to agreement, but it is typically market rent (sometimes even above if there’s a reasonable justification, like substantial adaptations made to the property). 

There’s also the added financial benefits of not having to pay letting agent fees or for internal maintenance within the lease. 

The provider often takes on the gas and electricity certification too. 

• All types of property are suitable

Flats (one to two beds), bungalows, larger houses with multiple rooms, HMOs, and blocks of one bed flats can all be suitable for supported living accomodation. 

A lot of providers don’t even require any adaptations (or at the most there could be a few minor changes needed, such as a new door entry system or an extra smoke alarm), meaning minimal work on your end.  

The need for en-suites and kitchenettes also varies. Some providers would prefer not to have them fitted to encourage residents to socialise in communal spaces, but others see it as a nice additional add on. 

The bottom line is that the flexibility is there within the model and you’ll likely find a provider whose needs are already aligned with the specifications of your property.

Generally, a standard residential property doesn’t even require a change of Use Class, as the majority of care doesn’t require a change from C3. 

• Ethical and commercial benefits

Getting involved in supported living can not only be a wise move commercially, but you get the added benefit of providing homes for vulnerable people who may have previously been in unsafe living conditions. 

“Doing this well, doing this ethically means that we can still make money…we’ve got to be running a business which is making us enough money to keep going…and keep providing these houses.” - Mark Bowen 

With supported living agreements, you’re holding residential investments in a commercial context – basically a win-win arrangement. 

You can benefit from the growth of residential house price increases, whilst saving time and money by being more hands-off with the property. 

Plus the added bonus of making meaningful impacts to the lives of vulnerable people. 

Find out more in the on-demand webinar

During the session, Lisa and Mark shared even more reasons why supported living could be a beneficial move for developers. 

They also talked through examples of recent projects with detailed financial breakdowns and insights into how Supported Living Gateway can help developers get started in this space. 

Watch it on-demand below: