The Golden Opportunity of Supported Living: Thriving amongst Policy and Market Uncertainty with Alex Baker
Last updated: 31 Jan 2025
Exploring Supported Living with Alex Baker
In this Deal Finder’s Corner, Alex Baker, co-founder of the Supported Living Platform, sheds light on one of the UK property industry’s most impactful niches: supported living. With years of experience and a track record of award-winning projects, Alex shares invaluable insights into how supported living is reshaping the property landscape and improving lives.
If you’ve been seeking ways to diversify your property investment strategy while making a meaningful impact, supported living could be the solution. Using property software like Property Filter, you can streamline the process of sourcing opportunities and maximise your returns while supporting vulnerable communities.
What is Supported Living?
Supported living is a tailored approach to property investment that combines accommodation, care, and support for individuals who need extra assistance. Unlike social housing, supported living focuses on creating bespoke environments for residents with specific needs, including those with mental health challenges, autism, or physical disabilities.
Key benefits include:
Better Health Outcomes: Supported living fosters independence and personalised care, leading to improved recovery rates.
Cost Efficiency for Taxpayers: It reduces reliance on expensive hospital care, easing pressure on the NHS.
Investor Advantages: Long-term leases, commercial valuations, and higher-than-market rents make supported living a lucrative investment model.
Learn how Property Filter helps you find best deals in your area.
Why Supported Living matters?
Supported living is not only a financial opportunity but also a chance to make a difference in the lives of vulnerable individuals. As Alex explains, the sector provides stability, fosters dignity, and improves the overall quality of life for residents. From a taxpayer’s perspective, it helps alleviate the financial burden on the healthcare system by enabling quicker recovery and reduced reliance on hospital beds.
For property investors, supported living offers a way to combine financial growth with social impact, creating a win-win scenario for all stakeholders.
Key strategies for success in Supported Living
Building strong relationships with care providers
One of the first steps in supported living is partnering with reputable care providers. Alex emphasises the importance of due diligence:
“Not all care providers are made equal. It’s essential to vet them thoroughly and ensure they align with your values and investment goals.”
The Care Quality Commission (CQC) is an excellent resource for assessing potential partners. Look for care providers with strong financials and positive ratings to ensure a stable and profitable collaboration.
Designing properties for impact
Supported living properties must meet specific requirements to cater to residents' needs. Common adaptations include:
Non-slip flooring
Low-surface-temperature radiators
Anti-ligature fittings
Accessible bathrooms and kitchens
Alex advises working closely with care providers during the design phase to ensure the property meets all necessary standards.
Leveraging FRI leases
A Fully Repairing and Insuring (FRI) lease is a cornerstone of supported living investments. With an FRI lease, care providers assume responsibility for maintenance, reducing the landlord’s operational burden. These leases often span 10-20 years, offering stability and predictable cash flow.
“A well-structured lease is more important than the property itself. It ensures long-term profitability and protects your investment.”
Overcoming challenges in Supported Living
While the benefits are significant, supported living comes with challenges, including:
High barriers to entry
Limited financing options
Complex regulations
Despite these hurdles, the rewards outweigh the difficulties. As Alex puts it:
“The impact we create and the lives we change make every challenge worthwhile.”
Case study: Transforming spaces, transforming lives
One of Alex’s most notable projects involved converting a dilapidated care home into a high-end supported living facility. The property now serves as a safe haven for residents with mental health challenges, complete with modern amenities and thoughtful design features.
The project’s success underscores the potential for combining social impact with financial returns, achieving commercial valuations that significantly boosted equity.
The Supported Living advantage
Reliable cash flow
Supported living eliminates common property headaches, such as voids and maintenance costs. With FRI leases, landlords receive consistent income regardless of occupancy levels.
Social impact
By creating safe, welcoming spaces, investors contribute to societal well-being. This social impact often attracts ethical investors and funding opportunities.
Market resilience
Unlike traditional rental markets, supported living is less affected by regulatory changes, such as the Renters’ Reform Bill. The focus on long-term leases and inflation-linked rent increases ensures stability.
Get started with Supported Living
If you’re ready to explore supported living, start by:
Building relationships with care providers.
Understanding FRI leases and their advantages.
Leveraging tools like Property Filter to find suitable properties and streamline due diligence.
Join the Property Filter Community for weekly calls and exclusive insights.
Conclusion: Making a difference through property
Supported living offers a unique opportunity to align your property career with meaningful social impact. By focusing on quality, collaboration, and sustainability, you can create a thriving investment model that benefits everyone involved.
“When you prioritise people over profit, the financial rewards follow.”
What should I do next?
Learn more about supported living and connect with Alex Baker through The Supported Living Platform.
Watch Alex’s full Deal Finder’s Corner episode on YouTube.
