Social Housing in Glasgow– a Unique Investment Opportunity
Alliance Property Group is one of the largest suppliers of properties to the two social housing schemes in Glasgow that we call the Guaranteed Rent Scheme. We have a very close and long term working relationship with the GRS schemes in Glasgow. .
The GRS offers investors a unique opportunity to ensure their rent is paid every month with no voids, as well as other benefits which enables the investors to future proof their property and investment strategy. We have successfully sold 100s of off market and below market value properties suitable for the GRS to investors from all over the world.
We have a passion for the Guaranteed Rent Scheme as Alliance and our investors are making a positive social difference and impact as well as making a secure and long term investment.
The details of the Guaranteed Rent Scheme are:
Who Funds and Operates the GRS?
- This is a UK Government Home Office funded scheme.
- It currently only operates in the Glasgow City Council local authority area.
- It is operated by two very well experienced and respected Private Social Housing Organisations.
- The GRS scheme contract is until 2029 and the contract will be renewed again.
- The GRS requires 60 new and additional properties every month to meet demand.
What About the Rental Payments?
- No rent payment voids throughout the contract
- Rent paid is comparable to open market rent
- The lease start date and payment date is started as soon as the property refurbishment is complete.
- Rent is paid on 1st of every month
- GRS are responsible for paying all utility and council tax bills
What Properties Are Required?
- There is a maximum rent level that they pay depending on the number of rooms in the property.
- The look for 1, 2, 3 and 4 bed properties.
- To ensure the property is acceptable to the GRS, Alliance Property Group will check this before we issue the deal to the investors.
- If the Deal Proposal we send states in a number of places “Suitable for The Guaranteed Rent Scheme” then we have check and the GRS have verified it is suitable.
- If the Deal Proposal does not state any of the above then it is not suitable either because it is not in the Glasgow City Council boundary or the area has enough allocated properties on the GRS.
What Standard of Properties are Required?
- The GRS has a good standard of what is required, externally, internally, the EPC rating, decoration and finish and furnishings.
- Those standards are part of Alliance Property Group’s diligence on all property deals.
- The properties require to be furnished and the requirements are:
- Lounge: Sofa, dining table and chairs, coffee table
- Bedroom: Bed- single or double, wardrobe, chest of drawers, bed side table.
- Kitchen: Washing Machine, Fridge Freezer, Cooker
- Typical Furniture cost are
- 1 bed £800
- 2 bed £1000
- 3 bed £1200
- 4 Bed £1500
- Monthly Operating Expenses are on average 2% of gross monthly rent
- Property inspections are carried out every month by housing officer allocated to the property.
Do I Need A Letting Agent?
- Scotland has the highest regulated and best procedures in place for landlords and for letting agents, making it the country that others follow to ensure the highest standard of housing quality and professionalism for companies like ourselves and letting agents .
- With the level of regulation and compliance required and if you are new to the UK property market then it is highly recommended that a letting agent is required.
- You are allocated a Property Manager from the Letting Agent we recommend for the GRS.
- They will keep ensure the landlord, property, compliances, communication and rent payments are always paid on time every month.
What About Repairs?
- GRS covers all repairs or damage caused by tenants.
- The owner is responsible for both boiler and plumbing wear and tear repairs.
- Property inspections are carried out every month by housing officer allocated to your property.
What if I want To Take The Property Back from the GRS?
- The property back from the GRS when 2 months written notice is given to the Letting Agent and the GRS.
- The GRS will return the property to you in the condition it was handed over in minus fair wear and tear.
Is there Any Catch?
- It may seem too good to be true but over 100 investors have bought properties through Alliance for the GRS in the last 3 years. Many are now repeat customers and is their only focused strategy.
With attractive property prices in Glasgow and its metropolitan area, the excellent discounts and yields as well the UKs highest house price growth region, combined with the guaranteed payments, the benefits the scheme offers, the very strong Power Team and the high level of service that Alliance Property Group offers, you can see why the scheme is so popular.