/ Government-backed income / 15-year FRI leases / Inflation-linked rent / £3 billion supply gap / No void risk / CPI-linked annually / Care Act 2014 / Enhanced Housing Benefit / Government-backed income / 15-year FRI leases / Inflation-linked rent / £3 billion supply gap / No void risk / CPI-linked annually / Care Act 2014 / Enhanced Housing Benefit
Specialised Supported Housing

The £3 billion gap nobody's talking about.

Specialised supported housing generates government-backed, inflation-linked income on 15-year FRI leases, with void risk carried by the care provider. It is one of the most structurally resilient income streams in UK property and one of the least understood by mainstream investors.

£330
Per unit, per week (indicative average)
15yr+
FRI lease minimum
£3B
Sector supply shortfall
Supported housing interior
Live pipeline
Bodmin, Cornwall
13 units · £3.5M GDV
What is SSH

Purpose-built independent living,
delivered with visiting support.

SSH units are purpose-designed flats or bungalows, typically 45sqm minimum, where registered care providers deliver visiting support to residents living independently. The planning framework, funding structure, and return profile all differ substantially from institutional care.

The UK government carries a legal obligation to house vulnerable adults under the Care Act 2014, an obligation local authorities cannot transfer away. The £3 billion supply shortfall reflects a gap in current provision, and the income generated flows from the DWP through a structured funding chain rather than from the open rental market.

The structural drivers

  • Ageing population driving demand for specialist accommodation
  • Care home closures shifting provision toward community housing
  • Local authority obligations under the Care Act 2014
  • Government policy favouring independent community living
  • Enhanced Housing Benefit rates, exempt from LHA caps
  • Institutional capital entering the sector, early movers benefit
How funding works

Government-underwritten income,
not market rent.

SSH income originates with the DWP and flows through local authorities and care providers before landing as a fixed, inflation-linked lease payment. The rental market plays no part in this chain.

01
DWP
Funds enhanced Housing Benefit for vulnerable adults
02
Local Authority
Administers Housing Benefit and identifies housing need
03
Housing Benefit
Enhanced rate paid, exempt from LHA caps
04
Care Provider
Registered operator holds the head lease, manages tenants
05
Investor
FRI lease income, inflation-linked, 15 years minimum
£330
Per unit, per week (indicative average)
15yr+
FRI lease, full repairing and insuring
CPI
Inflation-linked annual rent increases

Rental figures are indicative averages only. Actual income will vary depending on the specific development, location, and level of care provided. Nothing on this page constitutes a financial promotion or investment advice. Alpus Group does not provide regulated financial advice. Prospective investors should seek independent financial and legal guidance before making any investment decision.

The investment case

Same capital.
Radically different outcomes.

The same capital deployed into supported housing produces a structurally different risk and income profile. These two models belong in separate conversations.

Standard

Buy-to-Let

Market rent, tenant risk, Section 24 tax changes, rising interest rates, void periods.

Typical yield3.5-5%
Income sourceOpen market rent
Void riskLandlord bears fully
Lease length6-12 months
Rent reviewMarket-dependent
Tax exposureSection 24 applies
MaintenanceLandlord liability
Alpus approach

Supported Housing

Government-backed income, inflation-linked, full repairing lease. Income certainty for 15+ years.

Indicative yield6-8%
Income sourceGovernment Housing Benefit
Void riskTransfers to care provider
Lease length15-25 years
Rent reviewCPI-linked annually
Tax exposureCommercial structure options
MaintenanceProvider-held (FRI lease)
Risk

How we manage risk.

Every investment carries risk and SSH is no exception. What follows is where the exposure sits and how Alpus structures against it.

Planning risk

Change of use

Every contract exchanges subject to planning consent being granted. Capital moves only when the site is confirmed viable for conversion.

Construction risk

Cost overruns and delays

Conversion projects carry unknowns that surveys can miss. Alpus manages this through established contractor relationships, integrated supply chains, and 30 years of senior construction leadership.

Void risk

Income interruption

The care provider holds the head lease and pays rent regardless of occupancy. A back-to-back lease agreement is in place before construction begins, securing income before a pound is spent on the build.

Regulatory risk

Care provider quality

SSH income depends on the care provider maintaining their CQC or Ofsted registration. Alpus manages this through rigorous provider due diligence, multiple provider relationships, and lease structures that allow substitution without disrupting the income stream.

Fit

Who SSH works for.

SSH tends to suit investors who

  • Value income certainty over capital speculation
  • Are comfortable placing capital and letting Alpus handle the rest
  • Want long-term, government-backed returns rather than market exposure
  • Are looking for institutional-grade lease terms in a structurally undersupplied sector
  • Think in decades, not quarters
Invest with Alpus

We find the sites.
You provide the capital.

SSH sites must meet a complex set of criteria. Alpus sources, structures, and develops each project from acquisition through to lease commencement. Investors provide capital and receive a fixed, inflation-linked return once the FRI lease is live.

How it works

Alpus handles site identification, planning, construction, care provider relationships, and lease execution. Once the project completes, the care provider assumes operational responsibility and carries the void risk. Investors hold the asset and collect the income.

Current pipeline

Active projects include Bodmin, Cornwall, a 13-unit conversion with a £3.5M gross development value, and a further scheme in Looe, Cornwall. Get in touch and we will share the relevant details.

Get in touch

Start the conversation.

Never shared. We respond within one business day.