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Can UK Councils Home the Homeless alone, could Housing Associations fill the gap ?

The effectiveness of UK councils in housing homeless individuals can vary widely depending on several factors, including local policies, funding availability, resources, and the specific approach taken by each council. While some councils may excel in providing support and housing options for homeless individuals, others might face challenges that hinder their ability to effectively address homelessness. The UK government has made efforts to address homelessness through various initiatives, such as the Homelessness Reduction Act 2017, which places more emphasis on prevention and support for those at risk of becoming homeless. Additionally, there have been programs aimed at providing temporary accommodation and support services for homeless individuals. However, there have been reports of overcrowded and inadequate temporary accommodations, long waiting lists for social housing, and budget constraints that impact the ability of some councils to effectively house homeless individuals. Moreover, the causes of homelessness are complex and often interconnected, including issues like poverty, mental health, addiction, and lack of affordable housing, which can make it challenging for councils to address the root causes of homelessness. It’s important to note that the situation can change over time and from one location to another within the UK. Some councils may have more successful programs and resources dedicated to tackling homelessness, while others may struggle due to various reasons. Public opinion on how well councils are doing in addressing homelessness can also vary based on individual experiences and perspectives. If you’re interested in the status of how UK councils are handling homelessness, I recommend looking up recent reports, studies, and news articles that provide insights into specific council efforts and outcomes related to homelessness in different regions of the UK. Housing associations can play a significant role in addressing the housing crisis in the UK, but they are one part of a broader solution that requires collaboration between various stakeholders, including governments, local authorities, private developers, and social organizations. Housing associations are non-profit organizations that provide affordable housing and support services to a wide range of people, including those on lower incomes, key workers, and vulnerable populations. There are some ways in which housing associations can contribute to solving the housing crisis. Housing associations often focus on building and managing affordable housing units that cater to individuals and families who might not be able to afford market-rate housing. By offering affordable options, they help address the gap between housing demand and supply. Many housing associations provide social housing, which is rented housing typically provided by the government or non-profit organizations to those in need. This type of housing helps support individuals and families with lower incomes. Housing associations can develop mixed-income housing projects that include a combination of market-rate, affordable, and social housing units. This approach promotes social integration and reduces the concentration of poverty. Housing associations often offer additional support services to residents, such as employment assistance, education and training programs, and community-building initiatives. These services can help residents improve their overall quality of life and work towards long-term stability. Housing associations can be at the forefront of innovative housing design and sustainable building practices, helping to create housing that is not only affordable but also environmentally friendly and energy efficient. Collaborating with local governments, private developers, and community organizations allows housing associations to pool resources, share expertise, and create comprehensive solutions that address various aspects of the housing crisis. Housing associations can work on preventing homelessness by providing transitional housing and support for individuals at risk of becoming homeless. While housing associations have a role to play, it’s important to note that the housing crisis is a complex issue with multiple underlying causes, including housing supply shortages, affordability challenges, economic disparities, and more. Addressing the crisis requires a multi-faceted approach that involves policy changes, increased funding, land use reforms, and coordinated efforts among various stakeholders. Ultimately, housing associations can contribute significantly to alleviating the housing crisis in the UK, but their impact will be most effective when combined with broader systemic changes and strategic partnerships across the housing sector. Here at Global we and our partners work with Housing associations who take tenancies in our investors properties providing a long term net income with no voids to the investors and homes for those who maybe homeless without this opportunity.

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Can I maximize my property investment returns renting to a housing association?

Getting better returns from a housing association tenant in the UK can depend on various factors, including the location of the property, the terms of the tenancy agreement, and the demand for rental properties in that area. Here are some considerations to keep in mind: The location of the property is a crucial factor in determining rental returns. Properties in high-demand areas, such as city centres or areas with good transport links, tend to have better rental yields. Research the local rental market to understand the demand and rental rates in the specific area where your housing association property is located. The condition of the property can significantly impact its rental potential. Ensure that the property is well-maintained, clean, and in good repair. A well-presented property is more likely to attract tenants and command higher rents. Depending on your budget, consider making value-add improvements to the property. These could include upgrading the kitchen or bathroom, enhancing the curb appeal, or adding features that tenants might find attractive. However, be cautious not to overspend on improvements that won’t yield a significant increase in rent. Analyse the demand for rental properties in your area. If there is a shortage of rental housing and a high demand for housing association properties, you might have the opportunity to command higher rents. Conduct thorough market research to understand the rental rates for similar properties in the area. This will help you set a competitive rental price that offers good value to tenants while maximizing your returns. Consider whether you will manage the property yourself or hire a property management company. While managing the property yourself might save money, a professional property manager can handle tasks such as tenant communication, maintenance, and rent collection, potentially reducing the stress and time investment on your part. Choosing reliable and responsible tenants is essential to ensure consistent rental income and to minimize the risk of property damage. Proper tenant screening can help you avoid potential problems in the future. Make sure you understand the legal obligations and responsibilities that come with renting out a property, including adhering to the terms of the housing association agreement and complying with relevant landlord-tenant laws. Consider your long-term goals for the property. Are you looking for short-term rental income, or do you plan to hold onto the property for capital appreciation over time? Your strategy might influence how you approach rent pricing and property management. Global investments specialise, with their partners, in the sourcing and selling of housing association stock that comes with upon completion of the transaction a tenant in place for 10years with an increasing rent and a full repairing and insuring lease. We have sold many properties of this type and can help in the right selection to fit your budget and circumstances. It’s important to note that the relationship with a housing association might come with certain restrictions and guidelines that could impact your ability to set rents or make certain changes to the property. Always consult with legal and financial professionals before making any decisions that could affect your returns or the terms of the housing association agreement. Contact us to speak with one of our experts.

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There is a shortage of Social Housing in the UK currently

Shelter makes the point on their website (https://england.shelter.org.uk/) that the Social Housing (Regulation) Act is now law – but the government must do more. After years of demanding positive change to protect tenants, this legislation is a huge step forward. But stronger regulation alone isn’t enough. Investment in more social housing is desperately needed to help over a million households stuck on social housing waiting lists and the 100,000 households who are homeless right now, they say. The following is an extract from their proposals. There is a social housing deficit. More people than ever are struggling to afford a secure place to live. Yet, not enough social homes are being built. Over 1 million households are waiting for social homes. Last year, 29,000 social homes were sold or demolished, and less than 7,000 were built. In England, there are now 1.4 million fewer households in social housing than there were in 1980. As a result, millions of households have been pushed into the private rented sector, which has more than doubled in this time. Their facts and figures explain the issue. There are not enough homes in the UK. They state that a home is a fundamental human need. But right now, there are simply not enough good quality, low-cost homes available for everyone who needs one. Social housing on the decline. Social housebuilding in England is at its lowest rate in decades. Since 1991, there has been an average annual net loss of 24,000 social homes. Fewer social homes are built, compared to those lost through sales and demolitions. The result is a deficit in social housing. home cost 8 x average salary. There are many unaffordable homes. The housing emergency is affecting many people across the country. Priced out of owning a home and denied social housing, people are forced to take what they can afford. Even if it’s damp, cramped, or away from jobs and support networks. Social housing has declined as fewer homes have been built in England since 1923 Private housebuilding and social housing delivery peaked in England in the 1930s and again in the 1950s through to the 1970s, with house prices climbing gradually. Since the 1980s, construction of social housing and private homes has severely declined, with steep increases in house prices from the mid-1990s onwards. Housebuilding has almost halved in 50 years. In the 1960s, 3 million homes were built in England. Since 2010 the UK has built just 1.3 million homes. This is one reason why house prices are so high. And the UK relies on the private sector to build houses. And the goal of the private sector is to make a profit. When fewer people can afford to buy their own home, it affects the number of homes developers sell. And as a result, developers build fewer homes. Since 1990, as part of their developments, developers must contribute about a quarter of new builds as Affordable Housing (AH). So, when private developers don’t build houses, that means we’re losing out on social housing too. So, what is ‘affordable housing’?  The government’s definition of Affordable Housing (AH) is housing for sale or rent for those whose needs are not met by the market. This includes housing that provides a subsidised route to home ownership and/or is for essential local workers. This definition complies with one or more of the following definitions, social rented housing – low rent and secure housing which is prioritised by need. Affordable rent – this is higher rent (80% of the market rate). It is less secure housing, prioritised by need. Subsidised home ownership. Starter homes. Discounted market sale housing. Shared ownership – housing where you buy part of a home and pay part rent. Since 2000, successive governments have known that too few homes are being built and set a target of 250,000 new homes annually. Each year this target is missed. UK is now short of around 1.5 million homes. The reliance on developer contributions to deliver affordable homes means that when fewer houses are built, social housing levels fall. Since the 1980s, the UK has seen private developers build less. Worse still, the government has abandoned social housing delivery to the private market, hoping profit-seeking developers will build social housing as part of their planning permission. Today, the government provides very little direct funding for social housing. That strategy has obviously failed and is the main reason why there’s such a social housing deficit. The percentage of renters in overcrowded homes has steadily increased since 1995. Since 2000, the percentage of renters in overcrowded homes increased from 4.5 to 7.6. People become overcrowded when there is not enough affordable housing available, or when housing costs are high. On top of this, many families up and down the country are forced to settle for temporary homes. People ending up in temporary accommodation (TA) has more than doubled in the past decade, It last hit this level in 2007, just before the financial crisis. This is when housing costs rocketed, even though the waiting list for social housing has flattened since 2012, the number of families in TA is back up. Since 2012, the waiting list for social housing in England seemed to flatten. However, it’s important to note this isn’t because desperate families were placed in social housing. The reason goes back to 2011 when councils purged their waiting lists due to a massive shortage of social homes. In 2011, councils were given more flexibility in how they managed their waiting lists. This included limiting lists to people who lived locally for a certain length of time. Many councils introduced new criteria to help manage how they provided social homes. If families didn’t meet these criteria, they were removed from council waiting lists. The impact is clear. Since 2012, more people have been forced into temporary accommodation because there are simply not enough social homes available. While need for social homes is up, the number built is falling. And while the government has spent money on so-called ‘affordable’ housing – homes that aren’t affordable

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