This is a freehold house available at £290,000, let on a 25 year agreement to a housing association that provides supported living accommodation. It generates £40,600 a year, a net yield of 14%, with no running costs to the owner.
This is not a buy to let. It is a commercial agreement. You are not buying a house to manage and rent out yourself; you are buying the freehold with the lease already in place, and the income that comes with it. The £40,600 annual rent is paid monthly and increases every year.
Investment highlights:
- Freehold, asking price £290,000
- £40,600 per year rental income, paid monthly with annual increases
- 14% net yield, no running costs
- 25 year agreement with a housing association providing supported living
- The operator paying the rent turns over around £30 million a year, which is a large part of what makes the covenant strong
- Fully passive: no staff, no premises to manage and no day to day involvement
- Already operating, with income from day one
The property is a newly built Gleeson home (Dinan house type, 2 bed detached bungalow) on the Rivers Walk development in Stanley, County Durham, a prime new build development close to local amenities and transport links, in an area with established demand for supported living accommodation.
To be upfront: the same house type is currently offered new by the developer for £224,995. The difference between that price and our £290,000 is not the bricks, it is the contract. This unit already has the supported living lease signed and is generating £40,600 a year. An identical house next door would come with no tenant, no contract and no income.
Like any investment, this one carries risk. Send us an enquiry and we will talk you through those risks properly, so you can judge whether it fits what you are looking for. We also have other opportunities in different locations and at different price points.
