Social Housing Finance

It looks straightforward on the surface

Buying property for social housing can look straightforward on paper.

Stable income. Long term demand. Local Authority backed tenants.

That is what draws people in.

In reality, this is where a lot of deals start to slow down.

We are already working on these types of deals regularly, so we are seeing first hand what lenders will and will not accept.

The lease looks fine until a lender reviews it.
The operator sounds solid until it is properly checked.
The numbers work until the structure does not.

This is not standard buy to let.

The structure matters, and if it is not set up correctly from the start, funding becomes difficult.

Can you get a mortgage for social housing property in the UK

Yes, but it depends on how the deal is structured.

Lenders will look closely at:

• The lease agreement
• The strength of the operator
• The property type and location
• The exit strategy

Some lenders are comfortable in this space, others are not.

That is why getting the structure right early on makes a big difference.

What we are seeing at the moment

More investors are moving into social housing.

Most of the deals coming through are not single units.

They are:

• Portfolios
• Blocks of flats
• Existing properties being repositioned
• Leased arrangements with operators

In many cases, these deals are initially funded using bridging finance before being refinanced onto longer term lending

Funding is becoming more flexible, but only for deals that are set up properly.

Common challenges

Social housing deals come with a few key challenges:

• Lease structures that do not meet lender requirements
• Operators that have not been properly assessed
• Limited lender appetite depending on the deal
• Additional legal work and due diligence

None of this means the deal will not work.

It just means it needs to be looked at properly.

How we help

We are already working on these types of deals, so we know what lenders will and will not accept.

We will:

• Look at the deal in detail
• Tell you if it stacks up
• Structure it so lenders will engage
• Guide it through to completion

Funding options

• Loans from £50k to £50m
• Up to 75% LTV
• Rates from 4.79%
• Complex deals considered

In some cases, short term funding is used first, particularly where timing is tight or the property needs work. You can read more about our bridging loans here

Speak to GPS Financial

If you are looking at a deal, or thinking about moving into this space, send the details over.

We will tell you quickly if it stacks up.

If you are still exploring your options, you may also want to look at our buy to let mortgage guidance

Call 029 2267 7725 or visit our Contact page to get started.