£250 Million Invested. This Is What We Learned

How to Safely Invest in Supported Housing (The Right Way)

At Bailey Capital, we have invested over £250 million into social and supported housing investments across the UK. We have seen firsthand that while supported housing is the trending investment topic right now, many companies are doing it the wrong way – creating unnecessary risk for investors.

Our team was working in this sector long before it became popular. Through years of experience, trial and error, and thousands of properties, we have built a process that is designed to make supported housing investments as safe, secure, and impactful as possible.

If you want to make supported housing your best investment yet, here is the process you must follow.

A Solution to a National Crisis

The UK faces a chronic shortage of housing, especially for vulnerable individuals who need extra care and support. The government is not equipped to build and manage enough homes to meet the need – and that is where private investors come in.

Our model is simple: we acquire unloved, vacant, and sometimes derelict properties, and turn them into safe, warm homes where people can restart their lives. These homes become the foundation for people who need extra help to reintegrate into society and thrive.

This positive social impact is only possible because of the investment partners who work alongside us.

The Three Essential Approvals Before You Buy

While the concept sounds simple, the execution must be done correctly. Before purchasing any supported housing property, you must secure three critical approvals:

1. Approved Supported Housing Provider

The provider you lease your property to must:

• Be officially on the local authority framework for supported housing delivery.

• Be verified as delivering high-quality care with a real positive impact.

• Show evidence that they are operating for the right reasons, not just for financial gain.

We insist on visiting providers ourselves and confirming they meet these standards.

2. Approved Property

Approval is required at two levels:

• The housing provider must agree that the property is fit for purpose for their tenants.

• The local authority must agree that the property is suitable for supported housing use.

This suitability includes:

• Being in an area with acceptable crime rates.

• Having access to appropriate local amenities.

• Avoiding oversaturation of supported housing in one location.

• Being serviceable by staff based on location.

We always insist on receiving this approval in writing.

3. Fair Market Rent Approval

Setting a fair rent is crucial. We have developed our own proprietary method, known as Fair Market Rent, to ensure rental prices are both competitive and sustainable.

The process includes:

• Analysing the full market range, from the lowest (local housing authority rates) to the highest quality private rental stock.

• Ensuring our properties sit fairly within this range while delivering superior quality at a sustainable cost.

This ensures the rent is affordable, justified, and acceptable to the local authority, making the investment sustainable over the long term.

Renovation and Handover

During renovation, our personal opinions do not matter. What matters is that both the housing provider and local authority agree on the specification standards.

Once works are complete, the provider carries out a detailed inspection with us, room by room and item by item. When both parties are satisfied, a formal handover document is signed confirming the property meets all standards.

This protects the investor, the tenants, and the overall sustainability of the lease.

Why Supported Housing Offers the Best of Both Worlds

We believe supported housing offers the best blend of positive financial returns and genuine social impact.

However, doing it safely and successfully is difficult without the right team, systems, and experience. That is why our investment partners work alongside us, accessing pre-approved properties, a proven system, and a fully managed process.

Through this partnership approach, we can:

• Maximise investment security.

• Deliver consistent returns.

• Create measurable positive social outcomes for vulnerable people across the UK.

Your Investment Makes a Real Difference

At the heart of all this work are real people, whose lives are transformed by the opportunity to live in a safe, secure home.

In fact, many tenants go on to rebuild their lives, find work, and even give back to others in similar situations. Some, like the individual we feature in our recent video, have gone from homelessness to becoming a support worker themselves.

Supported housing investment is not just about financial returns – it is about changing lives for the better.

Want to dive deeper into how we set up every project for success?

We have created a full presentation that takes you through every part of our process. To access it, sign up below.