24 Jan Your guide to investing in Shared Ownership Retirement Living

Posted at 10:06h in Uncategorized by Charlotte Knibbs

In times of economic uncertainty, many investors look to the long term with asset-backed investments that offer reliable dividends and have high growth potential, regardless of the state of the UK economy.

Affordable housing will always be in high demand:

Over 1 million households in the UK are currently on social housing waiting lists.
Around 350,000 young adults aged between 20 and 35 are living at home with their parents, a 17% rise from 25 years ago.
Nearly 13 million people above the age of 65 live in largely unsuitable households.

Shared ownership offers a more accessible route to homeownership through a part-by, part-rent scheme that enables buyers to get onto the housing ladder with a smaller deposit and low fixed rent on the portion of the property they don’t own. And, it enables older people to downsize into more age-appropriate homes.

Despite the 2015 Conservative Government committing to deliver 135,000 shared ownership properties by 2020/21, only 76,500 new shared ownership homes were produced by this time. Approximately 202,000 shared ownership homes are occupied in England representing less than 1% of all households, creating a significant imbalance between demand and supply.

As a scalable and sustainable solution to affordable homeownership, it is clear that shared ownership has plenty of room for growth across the UK to meet the needs of millions of people. Through its delivery, a long-lasting solution to the UK housing crisis is provided whilst generating stable returns for investors – it’s a win-win for all. The latter, we’ll delve into below.

Why is shared ownership a viable investment opportunity for 2023?

The cost of living crisis exacerbates the demand

The cost of living crisis in the UK means more people are struggling to afford their usual day-to-day living and housing costs with the average disposable income in the UK set to fall by 3.8% in 2023. Whilst people can cut back on expenses such as food, leisure and travel, housing is essential, and with decreased affordability comes an increased demand for affordable housing. Shared ownership housing can reduce the costs of living by up to 50%, enabling homeowners to have more money left over to spend elsewhere.

An asset class in short supply

As the majority of shared ownership is delivered by non-profit housing associations, less than 2% of shared ownership assets are available for investment in the UK. This offers huge growth potential to fulfil the demand for affordable housing whilst benefiting investors looking for secure, predictable investments.

Portfolio diversification

Many asset classes struggle in recession and lose value. Yet, property, especially affordable property such as shared ownership, is a necessity, making it one of the few assets that work well in a high inflationary environment.

With AHH’s alternative investment fund, investors can tap into a stable income stream whilst contributing towards the delivery of a sustainable and affordable housing solution. As capital is managed internally and spread across the lifecycle of development, all associated risk is mitigated, and investors enjoy extra security which can be shown in our 8 year track record of delivering 100% returns.

Affordable, sustainable and in high demand, the future of affordable communities is shared ownership. At AHH, we are passionate about creating value for local economies, homeowners and investors, and we are excited to be on target to deliver 2,000 high quality, shared ownership homes per year by 2026. Through doing so, we align the interests of investors and homeowners to deliver a sustainable solution to the UK’s housing crisis.

If you want to become part of this fantastic movement that builds communities, supports the economy and provides a long term solution to the UK housing crisis, self-certify your eligibility as a High-Net-Worth, Sophisticated or Professional Investor to learn how you can get involved. Self-certify your eligibility here.