Page 21 - CL winter 2023 for web
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supported living
However, with a change of
government, the programme took Mortgage lenders need to see the
a back seat, and supported housing
became less regulated and opportunities in supported housing
inappropriately funded. The
ringfence around council funding
for housing-related support
I would lenders need to evict
services was removed. speak to dozens of people who prospect to an investor – why
invest in property who are
the tenants?
deterred from being involved in
If a landlord defaults on
The government must supported housing because of mortgage payments, the lender
difficulties in getting a mortgage,
find a way to identify the writes Lisa Brown. could repossess the property and
landlords that are in it for Several have put forward a sell it to another investor.
the right reasons property for supported living, the Being a landlord
provider gets excited with the
great match for their tenant – then Investors are expected to have
it falls through because the experience as a landlord as lenders
investor cannot get a mortgage. see supported housing as
There is now no specific budget complex. However, in reality, the
for supported living services and Stricter criteria support or housing provider will
councils do not have a statutory duty Lending criteria are often stricter be managing the tenancies.
to ensure people are in appropriate for investors looking to buy If tenants need 24-hour care,
accommodation; their only property for supported housing. In again, this puts off lenders. This
responsibility is to the Care Quality addition, only a limited number of makes no sense. Having carers on
Commission on the care aspect. insurance products will cover a site 24 hours a day means a
Supported living has been landlord whose tenants have property is better protected.
criticised for becoming a support needs and these tend to It may be that lenders do not
playground, with organisations be more expensive. realise staff do not live in the
merging and rebranding at such a With only a limited pool of property and are concerned about
rate that tenants have virtually no mortgages available and buy-to- them acquiring tenancy rights.
chance of even knowing who their let mortgages being more Or is it discrimination against
current landlord is. expensive, landlords must pass on those with the highest needs on
And, as with all social housing, these costs through higher rents. the part of lenders wishing to
demand has outstripped supply, protect their reputations?
leaving the sector chasing its tail. Repossession risks
Consequently, the option has been Lenders need to consider the risk What are the answers?
to turn to the private sector. of non-payment and have the We need more mortgage products
For private landlords and right to repossess the property. If a that allow for any type of tenant
developers, offering homes to those landlord does not or cannot regardless of support need.
with support needs while making a manage the mortgage, the lender We need to hold more
reasonable profit could be an could be concerned about conversations with lenders so they
Seán Kelly/www.seankellyphotos.com, posed by model; Carol/Flickr CC BY NC SA 2.0
attractive option. reputational risk make informed decisions. Showing
Councils with vision have if they have evidence of demand and the
responded, helping landlords to repossess business opportunities will drive
understand the requirements of a home the creation of products.
supported living, and working with and evict Property investors, lenders and
families and carers to help people tenants with supported living providers need to
move into their own home and disabilities. understand each other and how
towards something resembling Nonetheless, they fit in it. The groups speak
equality in housing options. a property with different languages.
But, to reach equality, supported a long-term We need to understand each
housing needs a hand up, with the tenant in situ is other better in order to facilitate
markets and economic problems an attractive the creation of more homes for
working against it. people who have support needs. n
n
The government must
acknowledge that supported housing Lending criteria Lisa Brown is a supported living
are often stricter
can cost more. It must find a way to for buy-to-let property investor and advocate and
identify the landlords and developers mortgages for founder of the Supported Living
that are in it for the right reasons - supported housing Property Network
and support them accordingly. n
Community Living winter 2023 vol 36 no 2 21
