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Invest With The Assurance Of The UK Government

Posted by Alexander Hartmann on April 25, 2023

The UK Government has been accepting refugees and asylum seekers into the country under their resettlement program since 1992. The Home Office transferred the management of the program to the private sector under government contractors. According to UNHCR statistics, at the end of 2020, there were 133,094 refugees and 61,968 pending asylum cases. The majority of asylum-seekers do not have the right to work in the United Kingdom and so must rely on state support, which includes housing.

Terraced Houses In A Residential Suburb

The three main providers of asylum seeker housings contracted by the Home Office are Serco (NW of England), Mears (NE of England) and Clearsprings (South of England). In 2020, under the COVID-19 pandemic, the UK has seen record-breaking arrivals of migrants by crossing the English Channel. The process of evaluating legal asylum requests has been historically around 5 years per applicant pre-pandemic, but of course, has been extended due to COVID-19. During this long time-frame of processing asylum applications, applicants are protected by international law from deportation back to their home countries and are therefore eligible for asylum seeker rights within the UK.

Currently, there are around 10,000 asylum seekers in temporary accommodation in hotels and former army barracks. The Government is moving asylum seekers under “Operation Oak”. This has caused a rise in domestic disorder cases within temporary accommodations, which further prompts the need for these individuals to be placed in permanent housing. Today, the Government is in need for at least 2,000 properties to house asylum seekers.

Due to this high demand of properties, and lack of supply, the UK Government has tasked the three major providers of asylum seeker housing the daunting task of trying to place all these applicants. With this, comes the unique opportunity to own one of these properties with a plethora of benefits to not just the owner, but to the tenant also.

The main features of these properties are:

  1. Minimum 6% Net yields per annum backed by the UK Home Office
  2. No Management Fees
  3. Guaranteed lease terms of 5 / 7+3 years with renewals
  4. No void periods
  5. Maintenance covered up to £5,000 per annum

Sample Investment

Sample Investment Property

Property Purchase Price: £239,000

Annual NET Rental Income: £16,780

Annual NET Yield: 7%

Annual Maintenance: £0

SDLT: As per Government Regulations

Annual Rent Increase: Max 5% of Rental Income

The minimum investment required to benefit from this opportunity is 160,000 GBP. Cash transaction only.

If this opportunity is of your interest and you would like to know more, feel free to contact us. Our team members will be happy to assist you.

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