Are you selling your affordable homes at a loss? There is a better option!
Planning obligations under Section 106 (S106) of the Town and Country Planning Act 1990 are often used to secure affordable housing and/or financial contributions to provide affordable housing or infrastructure. In most circumstances, developers sell their S106 properties at substantial discounts to Registered Providers (RP) of social housing.
Did you know that you can often retain ownership of your S106 properties, creating an excellent long-term managed investment? S106 properties are not legally required to be owned by an RP, only managed by an RP. This helps out developers and investors who are interested in retaining ownership of their S106 properties.
What is the affordable home service?
Orchard & Shipman is a long-established private and social sector housing manager with a UK-wide property management team and 30 years of portfolio management experience. As a Registered Provider, we are authorised to manage affordable housing, including S106 properties. Managing S106 properties through an RP allows developers/investors to retain ownership of their properties, leading to higher returns on investment and a broader, more successful residential property portfolio.
What are the benefits of using the affordable home service?
There are many benefits to investing in S106 property using affordable homes management services, such as…
Building a property portfolio
Get started with or expand your residential investment portfolio using the affordable home service to secure S106 property. Large-scale build-to-rent affordable property investments boost your portfolio and profit, as well as benefitting the local community (in accordance with Section 106) by providing rented housing. It is extra beneficial to provide housing in in-demand areas, particularly in student-populated towns if student renters are part of your target market.
Increasing your income stream
You’ll benefit from ownership of an appreciating, fundable, and saleable asset. Our affordable homes service can help you achieve a steady rental income, which increases over time as you make more money with the property value increases year-on-year. If/when the time comes to sell your property in the future, affordable housing offers a higher return on investment.
Development management and maintenance
Using affordable homes management, you’ll benefit from quality estate management and greater control of the developments’ public realm and placemaking. Orchard & Shipman will support you every step of the way, including helping with S106 negotiation, drawing on 30 years of property management experience. We offer a range of bespoke services to suit the needs of our clients from tenancy and property management, to assuming full ownership risks (such as rent arrears, voids, maintenance, and cyclical repairs).
Maintain peace of mind knowing that Orchard & Shipman is a long-established, ARLA-qualified Registered Provider of social housing, regulated by Government organisation Homes England. We know what we’re doing when it comes to all things property management and offering a bespoke service designed around your requirements as a developer/investor.
Control who is involved in property development
Stay in charge of your property and gain complete control over who is involved in the development, giving you peace of mind. Whenever you feel unsure, Orchard & Shipman is available with support and advice from locally-based property management specialists.