Ethical Property: THE FUTURE OF INVESTMENT

Ethical Property: THE FUTURE OF INVESTMENT

Why Invest in Ethical Property? In the world of investment, property is the safest route to net returns. After all, as long as people need accommodation, property will always be in demand be it commercial, student or residential. We’ve entered a new era of property investment, where financial return is not the only concern but

Ethical Property: THE FUTURE OF INVESTMENT

Why Invest in Ethical Property?

In the world of investment, property is the safest route to net returns. After all, as long as people need accommodation, property will always be in demand be it commercial, student or residential. We’ve entered a new era of property investment, where financial return is not the only concern but also how the property can service a community.

An ageing population

As scientific discoveries have revolutionised medicine, the 2019 life expectancy in the UK is 80.99 years while in 1969 the life expectancy was 71.72 years. The UK celebrates over 10 million aged 65 and older, outnumbering those aged 16 and under with the baby boomer generation (1946-1964) reaching retirement age, the demand for residential and nursing homes is at high demand. Currently, 400,000 people are living in care homes, and over 800,000 people living with Dementia. By 2021, this will rise to 1 million, and be more than double by 2050.

They’re currently 400,000 people living in care homes, and due to the over 85-year-old demographic being the fastest growing age group, predicted to grow by 106% to over 2.6 million by 2030.

With the mortality rate in the UK, dramatically rising, there is a dramatic increase in demand for specialist dementia and nursing care. The care home market will play a significant role in our future society, with increasing demand for quality accommodation, care and funding.

The combined market value for older people in the UK is currently estimated to be worth £22.2 billion, of which £13.4 billion is attributable to residential care. As the number of elderly people with high care needs in the UK is expected to increase over the next 20 years, the need for modern, fit for purpose care homes is increasing rapidly.

The Millennial Effect

Over 62% of millennials have considered starting their own business, with 72% feeling that start-ups and entrepreneurs are a necessary economic force for creating jobs and driving innovation. According to the 2016 BNP Paribas Global Entrepreneur Report, millennials are starting businesses at younger ages than their counterparts in previous generations. Baby boomers, for example, tended to launch their first business at an average of 35 years of age. Millennials, on the other hand, start their first business around age 27, implying they’re more eager to start businesses and possibly, are more willing to take risks in doing so. The report also shows that millennials have launched about twice as many businesses as their baby boomer counterparts have

The millennial leaders demand action on major issues including climate change, mental illness and work life balance. Commercial property is seeing their influence and meeting their perquisites outdoor spaces, remote working capabilities and multipurpose spaces.

Autism and the UK

In 2019, there are approximately 700,000 autistic people in UK, more than 1 in 100. Including their families, autism is a part of daily life for 2.8 million people. Many autistic children in state schools find difficulty in their needs being catered to, to the extent that 63% of children on the autism spectrum are not in the kind of school their parents believe would best support them. Additionally, 17% of autistic children have been suspended from school; 48% of these had been suspended three or more times; 4% had been expelled from one or more schools.

As autism is a lifelong disability that cannot be seen, the need for support to cope with finding employment and surviving daily life is vital.  Only 16% of autistic adults in the UK are in full-time paid employment and only 32% are in some kind of paid work.

To adhere to this, John Lewis has launched autism-friendly shoe services and The Education Authority now spends £270m a year on supporting children with special educational needs – including autism.

Final Note

With the rise of ethical factors being pushed for the forefront, the property market must represent the world we live in, both financially and medically.

 

 

 

 

 

 

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The rise of the DINK

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates among women in their twenties declined by 15% between 2007 and 2012.

The reasons why so many couples adopt a Dual Income, No Kids lifestyle, commonly known as DINK, is varied. For some the financial burden of raising a child is more trouble than its deemed worth and for others, it means sacrifices to lifestyle and career aspirations. Without the responsibility of children to cater to, the rise of DINK, the demands for property are not what they were for young professionals of Baby Boomers and Generation X.

What DINK mean for the property market?

Imperial Square, Luton

ONS figures showed that in 2017 the proportion of women never having children has doubled in generation.

Leisure & Amenity

Infinity Towers, Liverpool

Young professionals today are interested the trendy new neighbourhoods. Without the pressure to consider a property’s proximity to schools and day-care the focus for many tenants now is convenience. After working all day, and in some instances earning from a second job, the Millennial generation are interested in homes which offer closeness to shops and travel links.

Work Life Balance

The Tannery, London

In 2019, the UK is more career driven than ever before. A booming economy mixed with the impending launch of HS2 and mass regeneration schemes, means over 250,000 jobs are being launched in the UK by 2030. As a result of this, generation rent is drawn to city centre properties to stay in the heart of their working life.

Student Housing Demand

Marvel House, Plymouth

In 2018, 2.3 million students were recorded to be in higher education. Entrepreneur reported that 24% intend for pay for higher education via savings and 38% plan to work during their university studies. Higher education is at an all time high since the launch of the postgraduate government student loan. As more students stay in education for longer to gain qualifications such as an MBA and PhD, often via part-time study, instead of starting families the demand for student housing will increase.

Luxury Lifestyles

Hadrian’s Tower, Newcastle

Without adhering to the practicalities of raising children, tenants are desiring homes to suit their personalities and lifestyles. For example, 2019 saw an increase in properties with pools and audio door entry systems. Favouring state-of-the-art design specifications including private lounges, the demand for luxury property is increasing across the country.

Travel Pursuits

Epic Hotel, Liverpool

A chief reason, many adopt a DINK lifestyle is the sizeable disposable income, which can be used for travel. The rise of the staycation, has seen a dramatic increase in domestic holidays. As cities within the Northern Powerhouse gain regeneration, the rise in UK’s tourism to serene areas will benefit from the child-free movement.

Entrepreneurship

The Bridge, Kirkcaldy

Among Generation Z, working to suit your lifestyle is a priority. Entrepreneur announced 41% of Generation Z intend to start their own businesses instead of continuing the Millennial trend of side jobs. The rise is e-learning opportunities focusing on creative arts and business is predicted to be worth four times more than the higher education market. As a result of this, the demand for office space will increase.

Old Age

Bryn Illtyd Ltd, Wales

Without the comfort of having children to take care of them in old age, DINK jetsetters will be desiring Care Homes in the future.

Final Note

As the economic climate changes, the demands for property respectively alters. With more favouring an enjoyable lifestyle and the financial benefits that come along, the demand for family friendly property has seen a sharp reduction.

 

 

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Advantages of investing in care homes

Advantages of investing in care homes

In recent times, more and more people are considering care home investments as an alternative investment strategy for a variety of reasons. In today’s article, I’m going to outline these and show why it’s fast becoming a suitable UK property investment for so many people. Ageing UK population Despite the fact care homes have been

Advantages of investing in care homes

In recent times, more and more people are considering care home investments as an alternative investment strategy for a variety of reasons.

In today’s article, I’m going to outline these and show why it’s fast becoming a suitable UK property investment for so many people.

Ageing UK population

Despite the fact care homes have been existent in the UK for many years now, care home investment is currently very much a growing trend since changing demographics over the last thirty years or so have led to a substantial increase in the percentage of the UK population, which is aged 65 and over.

At present this is almost a fifth of the total population and it is predicted to increase to around a quarter over the course of the next thirty years. We’re constantly told that the UK has an ageing population and it’s certainly true amongst a large percentage of the total demographic. In the simplest of terms, the laws of supply and demand very much favour this market sector.

The figures show that there are more and more older people seeking these care homes and with a relative shortage in terms of supply on these, prices are going up on the care home investment sector.

Strain on public funded care

English councils are facing growing numbers of elderly and disabled people who require care, whilst facing a lack of funding to pay social care fees. To meet the growing need all but four councils in England are planning to increase council tax by the maximum allowed to help pay for social care.

The implementation of the National Living Wage6 in 2016, coupled with financial pressures on local authorities has put added strain on the care industry. Rises in providers’ costs and the squeeze on local councils’ budgets are leaving some care providers in an unsustainable position.

The combination of both privately and publicly-owned care home closures, and increasing numbers of people requiring social care, means there are big opportunities for well-run providers of care to expand the development and refurbishment of a care home investment in areas of high demand.

In some ways better than residential or commercial?

Investing in care homes offers the best advantages of commercial property investment and residential property investment, while minimising the potential downsides of both.

Other types of commercial property such as retail or office space can be affected by the same sorts of issues as faced by residential landlords. These include vacant periods, unrecoverable rent and changes in circumstances which negatively affect the property, such as changes to the employment landscape or to transport links.

The nature of care homes is such that these issues are generally of little to no concern.  The simple fact of the matter is that the ageing population of the UK has been growing older for three decades now and is set to keep on growing older for at least the next three decades.  Older people require homes which are suitable for their needs in the later stages of their life and care homes provide an effective way of catering for the ageing population.

Highly regulated industry

Due to the highly sensitive and important nature of care, the care home investment sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.

Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators.

With the tried and tested sales model, finding an ethical, sustainable investment that delivers stable returns and prospects for capital appreciation is no longer the preserve of large institutional investment, and is increasingly becoming an attractive option for individual investors thanks to the security of long leasebacks and long-term cash flows.

For the private investor, now is an excellent time to consider investing in a care home investment. There are a growing number of innovative developers offering great UK property investments of this nature.

Our Investments page contains all the information on the latest Tarquin Jones property investments. Please give us a call on 0208 445 6542 or email us at info@tarquinjones.com to inquire with us directly regarding any of them.

 

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Neighbourhood Watch: Whitechapel, London

Neighbourhood Watch: Whitechapel, London

Whitechapel Whitechapel is a vibrant, multicultural district in the East End of London, with many traditional pubs and curry houses. The lively Whitechapel Market, is a focal point for Asian food, discount fashion, and homewares. The cobblestone alleys here are the setting for guided walks about the 1800s Jack the Ripper murders, while the trendy

Neighbourhood Watch: Whitechapel, London

Whitechapel

Whitechapel is a vibrant, multicultural district in the East End of London, with many traditional pubs and curry houses. The lively Whitechapel Market, is a focal point for Asian food, discount fashion, and homewares. The cobblestone alleys here are the setting for guided walks about the 1800s Jack the Ripper murders, while the trendy Whitechapel Gallery hosts contemporary art exhibitions and film screenings.

Transport

Crossrail

Whitechapel benefits from being well connected to the rest of London via public transport. It has multiple stations:  Aldgate, Aldgate East and Tower Hill (all London Underground stations in ‘Zone 1’), Whitechapel (a London Underground and London Overground station), Shadwell and Tower Gateway (Docklands Light Railway stations) and Fenchurch Street (mainline station).

In addition, Whitechapel will be one of 38 stops along the new Crossrail line that runs from Reading to Essex. Once the line is complete in 2019, the journey from Whitechapel to Canary Wharf will be reduced from 12 minutes to 3 minutes, and the trip to Heathrow Airport to 36 minutes.

Retail

Petticoat Market

Petticoat Lane Market is one of Whitechapel’s most beloved landmarks featuring approximately, 100 stalls, mainly selling fashion, clothing and accessories. A short walk from Petticoat Lane is Whitechapel market. Stretching halfway down the high street, Whitechapel market offers an abundance of fresh fruits and vegetables, plus a variety of Asian cooking ingredients.

Over the last 10 years or so, the Old Truman Brewery on Brick Lane has been transformed with an eclectic mix of vintage stores, microbreweries and delicious wine pop-ups.

Culture

The Whitechapel Gallery

Founded in 1901, The Whitechapel Gallery was one of London’s first publicly funded exhibition spaces, and over the years has hosted some of the world’s most significant artists. Picasso’s Guernicawas displayed at the gallery on its first and only trip to the UK, and artists including Pollock and Frida Kahlo had their London debuts here. The Whitechapel Gallery remains one of London’s key venues in the contemporary art scene, hosting regular retrospective and modern, multimedia exhibitions.

Home to many much-loved animals, from rare breeds to the famous Bayleaf the Donkey, Spitalfields City farm has strong community links and is designed as a learning resource for local. Animals aside, the farm also boasts beautiful gardens, a café and a farm shop. In addition to this, they run regular events including cookery classes and the annual extravaganza of the Oxford vs Cambridge Goat Race.

30 St. Mary Axe also known as The Gherkin, is a marvel of modern architecture with its glass panels and green building strategies.  Mostly home to offices, it also has a number of restaurants, including Searcy’s on the highest floors of the building.

Ready to see more London properties? Email us at info@tarquinjones.com for more details.

 

 

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Neighbourhood Watch: Bootle, Liverpool

Neighbourhood Watch: Bootle, Liverpool

Bootle, Liverpool History Bootle was first recorded in the 11th century, as a small village nestled in the dunes near the River Mersey. By the early 19th century, Bootle was reimagined as an upmarket bathing resort. Bootle Town Hall is among the buildings erected in the last quarter of the 19th century. The population of

Neighbourhood Watch: Bootle, Liverpool

Bootle, Liverpool

History

Bootle Town Hall

Bootle was first recorded in the 11th century, as a small village nestled in the dunes near the River Mersey. By the early 19th century, Bootle was reimagined as an upmarket bathing resort.

Bootle Town Hall is among the buildings erected in the last quarter of the 19th century. The population of the town swelled during this period, boosted in large part by Irish immigration due to work opportunities on the docks.  The wealth to pay for the splendour of the town hall and the gentrified ‘Bootle Village’ area was generated by these docks. The skilled workers lived in terraced houses in the east of the town, while the casual dock labourers lived in cramped, dwellings near the dockside.

Regeneration

Santander have announced plans to build a £75 million base in Bootle. Their existing building will be demolished and replaced by a huge campus. The campus will be built with environmentally-friendly materials and designed to better accommodate staff. Currently, the Bootle site houses 2000 staff. The new campus will allow for a further 500 people in addition to a fitness centre and cycle storage for employees. Furthermore, a public park with opportunities for sporting facilities and new businesses are set to be built.

Liverpool2 is a £300 million regeneration project to expand the port of Liverpool, creating a river berth near the “Seaforth Triangle” south of the Royal Seaforth Dock and is a primary part of the Mersey Ports Master Plan. Upon completion, the new dock will be able to accommodate two post-Panamax vessels of 13,500 Twenty-foot equivalent unit simultaneously. The expansion of the docks includes the construction of a new deep-water terminal which will eliminate the restriction in vessel size of the current docks.

The completion of the docks will allow the world’s container ships to have direct connections to the northern half of the UK and Ireland. It is also expected to make a significant contribution the community, by adding £5 billion to the local economy and bringing an influx of employment opportunities.

Liverpool Community College and Mersey Maritime have signed partnerships with Peel Port to perform job skills training, 5,000 direct and indirect jobs will be created, of which 4,000 will be at the Liverpool Port.

Culture

Southport Pleasureland

In close proximity to a number of areas, Bootle offers a thriving social scene. The seaside resort at Southport, just up the road, is home to Pleasureland, offering plenty of thrilling rides, featuring free entry to the park.

There are six championship golf courses in the area: Royal Birkdale, Southport and Ainsdale, Formby, West Lancashire, Hesketh.

Transport

Oriel Road Railway Station

Bootle offers fantastic transport links by both rail and bus. Bootle is served by two railway stations from Liverpool to Southport, Oriel Road and New Strand. The bus station, located under the New Strand Shopping centre provides services to Liverpool City Centre, Penny Lane, Allerton, Tuebrook and Crosby.

Ready to see Liverpool properties? Email us at info@tarquinjones.com for more details.

 

 

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Why to consider investing in care home investment opportunities

Why to consider investing in care home investment opportunities

Here at Tarquin Jones, we don’t limit ourselves to purely residential Buy to Let investment opportunities. We take a look at various property sectors that fundamentally serve as sound investments for our clients. In today’s article, we will be going into the reasons why care home investment opportunities are proving a shrewd asset class for

Why to consider investing in care home investment opportunities

Here at Tarquin Jones, we don’t limit ourselves to purely residential Buy to Let investment opportunities. We take a look at various property sectors that fundamentally serve as sound investments for our clients.

In today’s article, we will be going into the reasons why care home investment opportunities are proving a shrewd asset class for many Buy to Let property investors.

Ageing UK population

Despite the fact care homes have been existent in the UK for many years now, care home investment is currently very much a growing trend since changing demographics over the last thirty years or so have led to a substantial increase in the percentage of the UK population, which is aged 65 and over.

At present this is almost a fifth of the total population and it is predicted to increase to around a quarter over the course of the next thirty years. We’re constantly told that the UK has an ageing population and it’s certainly true amongst a large percentage of the total demographic. In the simplest of terms, the laws of supply and demand very much favour this market sector.

The figures show that there are more and more older people seeking these care homes and with a relative shortage in terms of supply on these, prices are going up on those that are available.

Strain on public funded care

English councils are facing growing numbers of elderly and disabled people who require care, whilst facing a lack of funding to pay social care fees. To meet the growing need all but four councils in England are planning to increase council tax by the maximum allowed to help pay for social care.

The implementation of the National Living Wage6 in 2016, coupled with financial pressures on local authorities has put added strain on the care industry. Rises in providers’ costs and the squeeze on local councils’ budgets are leaving some care providers in an unsustainable position.

The combination of both privately and publicly-owned care home closures, and increasing numbers of people requiring social care, means there are big opportunities for well-run providers of care to expand the development and refurbishment of care facilities in areas of high demand.

In some ways better than residential or commercial?

Investing in care homes offers the best advantages of commercial property investment and residential property investment, while minimising the potential downsides of both.

Other types of commercial property such as retail or office space can be affected by the same sorts of issues as faced by residential landlords. These include vacant periods, unrecoverable rent and changes in circumstances which negatively affect the property, such as changes to the employment landscape or to transport links.

The nature of care homes is such that these issues are generally of little to no concern.  The simple fact of the matter is that the UK population has been growing older for three decades now and is set to keep on growing older for at least the next three decades.  Older people require homes which are suitable for their needs in the later stages of their life and care homes provide an effective way of catering for this significant demand.

Increased bank lending for the sector

Care home investments have seen a massive influx of investment support from a variety of lending institutions over recent years, and therefore are becoming an integral part of any investment portfolio. Banks and other lending institutions are becoming very eager to lend for UK care and nursing home investments, due to the long-term, robust and lower risk income streams that it offers.

They’re a far cry away from flipped residential property or student accommodation in terms of potential lending- care home opportunities are safe and assured to earn you a steady income. Banks and other lenders love this in a property and will more likely offer good financing as a result.

Highly regulated industry

Due to the highly sensitive and important nature of care, the health and social care sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.

Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators.

For the private investor, now is an excellent time to consider investing in UK care. There are a growing number of innovative developers offering great buy to-let investment opportunities within the UK care sector.

With the tried and tested sales model, finding an ethical, sustainable investment that delivers stable returns and prospects for capital appreciation is no longer the preserve of large institutional investment, and is increasingly becoming an attractive option for individual investors thanks to the security of long leasebacks and long-term cash flows.

Care home opportunities provide the investor with the chance to invest in one of the UK’s most unique asset classes to obtain a regular rental income. Capital growth is not something which is typically expected of care home opportunities but with some of the unique deals that Tarquin Jones manages to source i.e. St. Camillus in Blackpool, buyback options provide that aspect of the investment as well as a solid income stream.

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Neighbourhood Watch: Walsall, Midlands  

Neighbourhood Watch: Walsall, Midlands  

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Neighbourhood Watch: Walsall, Midlands           Walsall, Midlands           Walsall is a quaint industrial town in the West Midlands of England, just about 10 miles (16 km) north of Birmingham. Since its founding in 1002, Walsall has been steadily growing into the densely populated city it is today. Culture With a rich history, the town

Neighbourhood Watch: Walsall, Midlands  

Neighbourhood Watch: Walsall, Midlands          

Walsall, Midlands          

Walsall is a quaint industrial town in the West Midlands of England, just about 10 miles (16 km) north of Birmingham. Since its founding in 1002, Walsall has been steadily growing into the densely populated city it is today.

Culture

ALDRIDGE TRANSPORT MUSEUM

With a rich history, the town of Walsall celebrates its journey through its various museums.

The Aston Manor Road Transport Museum (also known as the Aldridge Transport Museum) shows its visitors the history of road transport in all of the West Midlands. You can see a wide range of vehicles ranging from buses to cars to transport memorabilia, even the iconic double decker red buses you know you love.

The Walsall Leather Museum details the history of leather in the country and also shows you how leather is handcrafted into items like purses and wallets. In addition to the live leather fashioning, you can walk around and see the displays of famous leather goods, including saddles made for the Royal family. The museum also offers guided tours to teach you more about the history of leather.

Entertainment

A3 Arena

Offering a thriving nightlife, Walsall’s highlights include Forest Arts Centre and Grosvenor Casinos. Hosting concerts, performances and conferences, the Forest Arts Centre is home to the A3 arena, a state-of-the-art concert venue.

GROSVENOR CASINO WALSALL

Alternatively, Grosvenor Casino Walsall is the perfect day and night leisure destination featuring a restaurant, bar, conference room and sports & entertainment lounge. Keen to provide the ultimate gaming experience the casino offers everything from Roulette and Blackjack tables to Cleopatra and Lucky Lady’s Charm slot games.

Nature

WILLENHALL MEMORIAL PARK

A historical town, known for its popularity with Queen Elizabeth I and Mary I, Walsall has a beautiful outdoors world, including Willenham Memorial Park. Creating in the 1920s in memory of the decreasing soldiers of World War I, the park features a woodland area, bandstand, bowling green, children’s play area, fishing pool and community pavilion.  Aided by a Heritage Lottery Fund grant, the park has excellent facilities including a bowling green, skate park, outdoor fitness centre, tennis courts, multi-use games area and walking and cycling routes.

Interested in Walsall properties? Contact us at info@tarquinjones.com

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Care home opportunities – ethical investments that pay off

Care home opportunities – ethical investments that pay off

With more and more people looking to obtain great returns through property investments, the Buy-To-Let markets are naturally competitive with those looking for the best properties and deals. An asset class that goes under the radar is care home investment opportunities for either the elderly or for those with special needs. Here, I will go

Care home opportunities – ethical investments that pay off

With more and more people looking to obtain great returns through property investments, the Buy-To-Let markets are naturally competitive with those looking for the best properties and deals. An asset class that goes under the radar is care home investment opportunities for either the elderly or for those with special needs. Here, I will go over why care home opportunities are excellent choices to generate income for those looking to invest in property.

Ageing UK population

Even though care homes themselves have been around for many years now, care home investment is currently very much a growing trend since changing demographics over the last thirty years or so have led to a substantial increase in the percentage of the UK population, which is aged over 65.

At present this is almost a fifth of the total population and it is predicted to increase to around a quarter over the course of the next thirty years.  In the simplest of terms, the laws of supply and demand very much favour this market sector.

The figures show that there are more and more older people seeking these care homes and with a relative shortage in terms of supply on these, prices are going up on those that are available.

In some ways better than residential or commercial?

Investing in care homes offers the best advantages of commercial property investment and residential property investment, while minimizing the potential downsides of both.

Other types of commercial property such as retail or office space can be affected by the same sorts of issues as faced by residential landlords. These include vacant periods, unrecoverable rent and changes in circumstances which negatively affect the property, such as changes to the employment landscape or to transport links.

The nature of care homes is such that these issues are generally of little to no concern.  The simple fact of the matter is that the UK population has been growing older for three decades now and is set to keep on growing older for at least the next three decades.  Older people require homes which are suitable for their needs in the later stages of their life and care homes provide an effective way of catering for this significant demand.

Increased bank lending for the sector

Care home investments have seen a massive influx of investment support from a variety of lending institutions over recent years, and therefore are becoming an integral part of any investment portfolio. Banks and other lending institutions are becoming very eager to lend for UK care and nursing home investments, due to the long-term, robust and lower risk income streams that it offers.

They’re a far cry away from flipped residential property or student accommodation in terms of potential lending- care home opportunities are safe and assured to earn you a steady income. Banks and other lenders love this in a property and will more likely offer good financing as a result.

Highly regulated industry

Due to the highly sensitive and important nature of care, the health and social care sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.

Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators.

Strain on public funded care

English councils are facing growing numbers of elderly and disabled people who require care, whilst facing a lack of funding to pay social care fees. To meet the growing need all but four councils in England are planning to increase council tax by the maximum allowed to help pay for social care.

The implementation of the National Living Wage6 in 2016, coupled with financial pressures on local authorities has put added strain on the care industry. Rises in providers’ costs and the squeeze on local councils’ budgets are leaving some care providers in an unsustainable position.

The combination of both privately and publicly-owned care home closures, and increasing numbers of people requiring social care, means there are big opportunities for well-run providers of care to expand the development and refurbishment of care facilities in areas of high demand.

Summary

For the private investor, now is an excellent time to consider investing in UK care. There are a growing number of innovative developers offering great buy to-let investment opportunities within the UK care sector.

With the tried and tested sales model, finding an ethical, sustainable investment that delivers stable returns and prospects for capital appreciation is no longer the preserve of large institutional investment, and is increasingly becoming an attractive option for individual investors thanks to the security of long leasebacks and long-term cash flows.

 

AdminCare home opportunities – ethical investments that pay off
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