What If the Local Authority Goes Bust? Protecting Your Investment

What Happens If the Local Authority Goes Bankrupt?

In recent years, cases like Birmingham’s bankruptcy have raised concerns among social housing investors about the stability of local authority funding. What would happen to your investment if the local authority responsible for your property’s rent went bust? With Bailey Capital’s structure, your investment remains protected even in such scenarios.

How Bailey Capital Protects Against Local Authority Bankruptcy

Central Government Funding for Extra Stability

Bailey Capital’s investment model is designed to minimise risks associated with local authority budgets. Here’s how it works:

Housing Association as an Intermediary: Instead of relying directly on local authorities for rent payments, we partner with large housing associations who manage rent collection.

Direct Access to Central Government Funds: Through this structure, rent payments are channelled from the central government, rather than from local government budgets. This setup ensures that even if a local authority declares bankruptcy, your rental income continues unaffected, backed by national-level funding.

This approach allows us to help local authorities address homelessness without burdening their budgets, while offering investors a stable, secure income source.

Why This Matters for Long-Term Stability

Minimised Risk, Maximised Confidence

With central government support, your investment with Bailey Capital is protected against local authority financial instability, giving you peace of mind. This proactive structure ensures that your income remains consistent, and our commitment to socially impactful investment can continue even in challenging economic environments.

To See How We Can Make This Investment Work For You, Click Below: