Most Supported Housing Deals Fail. Why?

The Three Essential Approvals for a Safe and Profitable Supported Housing Investment

At Bailey Capital, every supported housing property we buy follows a strict process because we learnt the hard way that missing key steps can lead to costly mistakes. After thousands of properties and years of experience, we now insist on three non-negotiable approvals before purchasing any asset.

If you want your supported housing investment to be safe, secure, and profitable, we recommend you do the same.

The Provider Must Be Approved

The first (and arguably most critical) step is ensuring that the provider you are leasing your property to is officially approved by the local authority to deliver supported housing services.

This means checking:

• They are already on the local framework.

• The local authority is set up to make rent payments to them.

• They are delivering high-quality care, verified through direct visits where possible.

Remember, supported housing is about far more than property. It is about the positive impact made to real people's lives. Working with a strong provider is the foundation of a sustainable, impactful investment.

The Property Must Be Approved

Once the provider is approved, the property itself must meet specific standards for supported housing.

This approval must come from both:

• The housing provider (to confirm it is fit for their cohort of tenants).

• The local authority (to confirm the property is suitable for the area and intended use).

What makes a property suitable?

• It must be in a location with low crime rates.

• It must have the right amenities and services nearby.

• It must avoid being in an area already overpopulated with other supported accommodation.

• It must be serviceable from a staffing perspective.

Not every property will be approved. In fact, only a small percentage of those we review make the cut. Patience and rigorous assessment are key.

The Rent Must Be Approved

Finally, the rental amount must be agreed upon and signed off by the local authority.

This involves:

• Aligning the rent with local market rates for the intended cohort.

• Ensuring the full rent package (including core rent, maintenance, and support costs) is sustainable for the duration of the lease.

A rent approval document is submitted by the provider, covering everything from maintenance contributions to the core landlord rent. Getting this document fully approved ensures the investment remains secure over the long-term, with no unpleasant surprises.

When all three approvals are in place - provider, property, and rent - you are setting yourself up for a truly hands-off, sustainable, and profitable investment that delivers genuine social impact.

Want to learn how we do this in more detail?

We run regular webinars showing investors how to safely invest into supported housing and how to work with us to access pre-approved properties.

To see how we can make this investment work for you, click below:

bailey-capital.com/supported-housing-webinar