What Is Social Housing?

In the UK, the term “social housing” refers to low-cost housing provided by government programming. People without the funds to buy a home or pay market rent can benefit from these programs, which provide suitable housing at a lower cost through government assistance.

The government generally subsidises between 30 and 70 percent of tenant rent in low-income housing, which can help families who are homeless or on the verge of homelessness find housing they can afford.

Why Is the UK in Crisis?

The UK has been experiencing a housing crisis, which has only been made worse by the COVID pandemic and the war in Ukraine. A shortage of homes has caused housing prices to skyrocket, making affordable homes scarce.

In a study by the National Housing Federation, it was found that an estimated 346,000 new homes were needed each year in order to meet the current needs for housing in the UK. Of these, 145,000 need to be affordable. Even with government efforts to increase the amount of affordable housing each year, the numbers are falling short of goals.

Large developers of housing have been unable to meet the demands for building, so the government is looking to smaller, regional developers to close the gap. The need for additional funding has caused a rise in investors in the social housing industry, and buyers are looking for faster, more sustainable options for building.

Modular Housing for Social Causes

Modular housing is not a new trend. Many people have been gravitating towards prefabricated housing due to the sustainability and eco-friendliness of this option.

In addition, modular homes have reduced construction times when compared to traditional constructions. This makes an ideal situation for prefabricated social housing.

With the demand for more affordable housing at a high level, having a building option that can accelerate the process by providing modular social housing is a definite benefit for those in need.

Prefab Social Housing and Social Investors

Although government programs have funding set aside to provide more affordable homes to be built each year, more and more investors interested in ethical investing have taken an interest in investing in social housing.

Modular social housing is a draw for investors due to the sustainability and green aspects of the homes, as well as the guaranteed income afforded by government subsidised housing.

Modular Homes for the Homeless

In addition to the potential for single-family rentals in social housing, modular homes can also be designed as prefab homeless shelters. Modular buildings can be constructed much faster, and larger-scale buildings meant to house the homeless can be erected in record time to make fast progress towards providing relief for the housing crisis.

Prefab temporary shelters to protect against the elements can also be helpful for meeting the needs of the homeless during the interim while affordable housing construction efforts work to keep pace with the growing needs of the community.

Battling the Housing Crisis in the UK

Overall, modular social housing has the potential to make big strides towards ending the housing crisis in the UK. In addition to providing a fast solution to the growing demand for affordable housing, prefab social housing can also provide interim solutions to assist the homeless while affordable housing options are constructed.

Book a call with one of our investment consultants to learn more about how to invest in social housing.

Concept Capital Group

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