At Denton Property Group, we recognise that no one can accurately predict the future, and we are still learning about the property investing market as we navigate the start-up phase of our business. However, despite the challenges posed by the global pandemic, we have managed to not only survive but also expand. We believe that our experiences can provide valuable insights for others looking to invest in property.

In December 2019, we published an article on our website about the benefits of investing in social housing, highlighting how this can reduce the volatility of an investment portfolio through securitised income provided by effective FRI government-backed leases. We called this article “Shelter from the Storm,” as we anticipated a major property market correction due to the turbulence in the markets. In hindsight, we could not have predicted the magnitude of the storm caused by COVID-19 and how it impacted the property market compared to the predictions made by leading property analysts at the start of the pandemic. This serves as a reminder of the limitations of our predictions and the predictions of experts.

As a result of the pandemic, there was a rush of owner-occupiers into the property market, contributing to property price inflation for single-unit residential buildings. The social housing sector typically requires single-unit residential buildings that can be used by a single family or subdivided for multiple occupancy use. The leases for social housing often have annual upward-only rent reviews pegged to an inflation index, which takes time to adjust. Consequently, current yields available for social housing landlords have been compressed. Nonetheless, we believe that market turbulence is here to stay for the foreseeable future, and investing in social housing with long-term government-backed leases could increase the resilience of your portfolio while making a positive social impact.

If you are interested in investing in social housing, we recommend contacting your local housing associations and charities to see what is available in your local area. Alternatively, if you are looking for a hands-off approach, we offer a service that will acquire a social housing portfolio for you. Register your interest and we will be in touch.