📌 Introduction: Why Lease-Based Supported Housing Needs Specialist Risk Analysis
The specialised supported housing (SSH) sector is attracting increasing attention from both institutional investors and impact-driven funds. However, lease-based models — often used to deliver SSH — carry unique risks that aren’t visible in standard commercial or residential real estate transactions.
To navigate this complexity, we’ve created a risk assessment checklist that helps investment analysts, brokers, and sales agents quickly evaluate the viability, resilience, and governance standards of a provider. This blog explains how to use it, and why it matters.
🏚️ Example of Poor Governance: Citygate Housing
Promoted as an ethical social housing investment, Citygate Housing attracted both private and institutional capital. In 2025, it collapsed amid fraud and money laundering investigations, with directors arrested. A lack of transparency and oversight led to major investor losses.
🏚️ Example of Financial Viability Failure: Home REIT
Despite raising £850M from institutional investors, Home REIT failed due to poor rent collection, overvalued properties, and widespread vacancies. The fund’s income model collapsed, leading to suspended trading, legal action, and eventual plans to wind down the business.
🧾 What Is the SSH Risk Assessment Checklist?
The SSH Risk Assessment Checklist is a tool designed to help professionals:
- Assess the financial stability of a registered provider (RP)
- Identify red flags in lease arrangements and governance
- Compare providers across a consistent framework
- Improve due diligence in transactions involving exempt rents and long-income leases
The checklist is a series of questions with a rating from 1-5 which will give you an average total rating, allowing you easily asses the strengths and weaknesses of the investment prospect
👉 You can [download the checklist here]
🧩 The 5 Core Areas We Evaluate
1. Regulatory Standing
We assess whether the provider has:
- A current RSH Viability and Governance rating (V1/V2 and G1/G2 are ideal)
- Proper registration with the FCA (for Community Benefit Societies)
- No recent regulatory notices or downgrades
📈 This helps investors understand whether the RP is operating under regulatory confidence or under scrutiny.
2. Financial Resilience
This section evaluates:
- Net assets vs. lease obligations
- Liquidity buffers (3–6 months minimum)
- Operating surpluses and clean audit reports
💡 Why it matters: Many RPs fail because lease liabilities outstrip their balance sheet — our tool flags this early.
3. Lease Structure & Exposure
Key points include:
- Lease length, break clauses, and index-linking
- Landlord concentration risk
- Whether the RP retains repair/void obligations
🏢 This allows sales agents to pitch only sustainably structured investments to clients.
4. Governance & Management
We assess:
- Board independence
- Clear separation between property and care functions
- Internal controls and audit functions
⚠️ Poor governance has led to multiple regulatory interventions in this sector — this section protects your reputation and your client’s capital.
5. Operational Performance
We track:
- Void rates (risk to cashflow)
- Local authority or care partner relationships
🧠 This supports investors and sales agents in identifying long-term occupancy risk, which directly affects valuation.
📊 Why This Tool Is Valuable for Analysts and Sales Teams
✔️ Helps filter viable opportunities before heavy due diligence costs
✔️ Strengthens client trust by presenting clear, risk-based insights
✔️ Enables better conversations with solicitors, valuers, and lenders
✔️ Shows early signs of red flags that might otherwise be missed
🚀 Download the Risk Assessment Tool and Start Evaluating Smarter
Ready to sharpen your investment lens in the supported housing sector?
🎯 [Download the SSH Risk Assessment Checklist here]
🔍 Frequently Asked Questions
Q: Is this tool suitable for institutional funders?
A: Yes — it aligns with RSH regulatory standards and mirrors the risk priorities of long-income and social impact investors.
Q: Can I customise this for my own portfolio or CRM?
A: Absolutely. The Excel format is flexible and can be embedded into your own templates.
Q: Does this apply to non-lease-based housing?
A: The core principles apply, but this tool is specifically designed for lease-based, exempt-rent social housing transactions.
📬 Final Thoughts
The SSH market presents strong income potential, but without the right tools, investors can easily step into under-regulated or high-risk territory. With this checklist, analysts and agents are better equipped to identify which deals to back, and which to walk away from.
👉 Get your copy of the checklist today.
Do you have an investment for sale or need some assistance with your analysis? If so get in touch and speak with a professional member of our team today – info@letsbuildproperty.co.uk
Check out http://www.letsbuildproperty.co.uk for more about us!
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