HSPG Affordable Housing exists to provide an increased availability of affordable housing, whilst highlighting the profitable opportunities available to investors in this growing, but not yet fully discovered, market. Our Affordable Housing specialists work with local authorities and Registered Providers to facilitate s106 developments, providing high quality accommodation at below-market cost.
Why Affordable Housing?
Continuing demand with an estimated housing deficit of 380,000 new homes per year with a study conducted by Crisis suggesting that 133,500 of these should be within social housing or intermediate rent schemes.
Credit Strength: Registered Providers are regulated entities.
An advantage over other property asset classes.
No planning or construction risk – HSPG purchase completed units only.
The ESG benefits – delivering improvements in both the affordability and availability of housing, and leading to an increase in:
– Health and Wellbeing
– Education standards
For the last 6 years, HSPG have been working to help solve the UK’s homelessness problem. We have identified that there is a funding gap for Affordable Housing sites under 50 units.
Housebuilders typically have a 30%+ s106 affordable housing obligation. As part of the planning requirement, these must be owned and operated by a Registered Provider. For house builders to occupy their new build units, they must have disposed of their Affordable Housing.
To achieve scale, large RPs and institutional funds typically don’t invest in sites under 30-50 units.
As there is less competition, this creates an opportunity to focus on 10-50 unit schemes and acquire at a discount.
HSPG focuses on key tenures providing secure, long-term and inflation-linked income.
HSPG directly owns a Registered Provider, Park Properties, allowing them to address the main entry barriers for such investments.
High levels of corporate governance standards are always upheld, in line with a quasi-government backed income stream. Our specialists have key relationships with registered providers and private managers within the sector, facilitating both acquisition and securing long-term management agreements with greater ease.
Through its subsidiary Housing Social, HSPG currently manages over 250 units of social housing on behalf of Manchester City Council, supporting their social housing process and has recently won a further contract to provide temporary accommodation with Middlesbrough Local Authority.
HSPG benefits from a team of experienced professionals who have cumulatively acquired in excess of 1bn. of affordable housing assets. To date, HSPG has completed over 500 transactions with a total GDV of over £150m. HSPG benefits from integrated management, marketing, financial strategy and development expertise in-house.
Having operated in the industry since 2015, HSPG has developed a network of key contacts within the debt market. The business has successfully raised over £100m of investment and development debt and has extensive experience in structuring social housing portfolios with recognised lenders such as Lloyds Bank.
HSPG is actively driving our Affordable strategy forward with a team across London and Manchester. We are always open to discussing your business needs, whether from a development or investment perspective. Please get in touch with one of our specialists below to find out more information.