Housing Presentation to PEN Kent Investors Tuesday 18 th Sept., - PowerPoint PPT Presentation

How to Profit from Social Housing Presentation to PEN Kent Investors Tuesday 18 th Sept., 2012 Ben Hughes & George Nartey 1

Agenda • Presenters • Social Housing Strategy • Market Update • Opportunities • Take action! • Q & A

Social Housing Definition “Public Sector Housing or homes provided by Housing Associations and other Registered Social Landlords”. Source: Housing Act 1988 Section 9(2) 3

Council Estate

Housing Association flats

Social Housing Our definition Homes provided for people with low or no income by Councils, Housing Associations and by Investors i.e. Landlords 6

Private Investor homes

Social Housing Strategy • Lease property to • Councils • Housing Associations • Rent to LHA tenants • Social Housing Plus 8

Why Social Housing? Unique Investor benefits 9

Guaranteed rent/Leases 10

Good LHA Rents 11

Investor benefits • Lower entry & running costs • Guaranteed rent schemes • 3-5 year leases • Near zero voids • Good LHA rents • Minimum involvement • Grants & Incentives 12

Forced Appreciation • Refurb. • Extend • Convert to flats • Split title • Get planning • Build

Extra bedroom 14

Social Housing Plus • Distressed is best! • Standards • Forced Appreciation • Grants & Incentives • Multiple exits 15

Market Update • Welfare Reforms • Rents capped • 30 th per centile • Room rate - singles • Life tenancies ended • Right to Buy re-launch • Maximum benefit • Universal Credit – 2013 16 16

Stock take Minus side • Some rents down • Evictions up • Homelessness up • Pressure on LA’s • Continuing uncertainty • PM seeking more cuts • Mandarins – reforms impractical? 17 17

Welfare Reforms 18

Stock take Plus side • Massive market - £21.4bn • 1.8m families waiting • 70m population (2027) • Building shortfall • Generation rent • Growing need for PRS • Low rates but rents rising 19 19

Stock Take Verdict • Go for it! • But remember • Knowledge is key • The fundamentals • Strong business case • Need to be Professional • New opportunities 20

Opportunities • Pressure on Councils • Bed & Breakfast • More leasing schemes • Councils more supportive • Rooms vrs Flats • New areas in demand • Deals – retiring landlords 21

Take Action! • Forums • Council websites • Get accredited • Landlord org’s. • Clear investment criteria • Diligent analysis • Invest! 22

Kent - District councils For more information about your nearest council and a list of useful services they provide, please select your area from the list below: Ashford Borough Council Bexley Borough Council Bromley Borough Council Canterbury City Council Dartford Borough Council Dover District Council Gravesham Borough Council Maidstone Borough Council Medway Council Sevenoaks District Council Shepway District Council Swale Borough Council Thanet District Council Tonbridge & Malling Borough Council Tunbridge Wells Borough Council

Grants? 24

Grants? 25

Bond Schemes

Leasing Schemes

Thank you! Q&A 28