How Can You Give Back By Investing in Social Housing in London 2024?
The Problem With Social Housing
The social housing crisis in London in 2024 is a pressing issue, with a significant rise in all forms of homelessness, including a 26% increase in rough sleeping in a year. The cost of living crisis and the housing crisis in the UK have contributed to this situation, with hundreds of thousands of people across the UK affected by homelessness. The latest statutory homelessness figures show a 7% increase in the number of households needing support, and the number of households living in temporary accommodation has also risen.
Families with single parents are particularly at risk, with decades of failure to build genuinely affordable social homes leading to heightened competition for rentals and an increased risk of eviction. The lack of affordable social homes has forced many single-parent families into unsuitable accommodation, with rising housing costs and limited social housing availability exacerbating the situation.
In response to this crisis, councils in London are determined to tackle homelessness, with plans to provide 90,000 homes for social rent and 25,000 for shared ownership. Despite the challenges, there are efforts being made to address the issue and provide support for those affected by the housing crisis.
Is Social Housing A Good Investment?
Investing in social housing in London in 2024 presents both challenges and opportunities. While spending on affordable housing in England is expected to be slashed by 9% compared to the previous year, investment activity in the affordable housing sector is projected to rebound strongly in 2024. The demand for affordable homes is picking up, and the financial performance of U.K. based social housing providers is expected to improve marginally in fiscal years 2024 and 2025. This indicates a potential turning point for the sector.
Despite the reduction in government spending, the demand for affordable housing is on the rise, which could create investment opportunities. Areas undergoing redevelopment, such as the Curzon Street HS2 station, are expected to drive rental demand, offering potential for capital appreciation. Additionally, living in the area where you’re investing can help build local relationships and enhance investment success.
Should You Invest In Social Housing?
In summary, the social housing crisis in London in 2024 is a significant and complex issue that requires urgent attention and comprehensive solutions to ensure that everyone has access to safe and affordable housing. While government spending on affordable housing may decrease, the increasing demand for affordable homes and the projected improvement in the financial performance of social housing providers suggest that investing in social housing in London in 2024 could be a promising opportunity.
