toggle menu

Acquisition of 32 existing properties to provide independent living in London, the South East and the Midlands

 

  • Freehold acquisition of thirty-two Specialised Supported Homes in the community
  • Independent Living for individuals with learning or physical disabilities and mental health issues
  • New 25 years leases between FAH and First Priority Housing Association (FPHA)
  • Nomination agreements with specialist care providers who work with the local authority to deliver support under the 2008 Care Act
  • High social value delivery
  • Expected to meet or exceed target returns

Deal summary

  • Acquisition through purchase of 32 existing properties with 25 year leases for the provision of specialised supported housing to individuals with learning or physical disabilities and mental health issues.
  • The 32 properties, known as FAH Independent Living, are spread through London, the South East and the Midlands.
  • Provision of significant social benefit through the allocation of homes to vulnerable individuals identified as being in housing need through the local authority.
  • Partnership working with a First Priority Housing Association (FPHA), local care providers and local authorities.
  • Funding is from central government and local authorities.
  • Property due diligence and valuation commissions completed by JLL.
  • Legal due diligence completed by Trowers & Hamlins.
  • Legal completion October 2016.

Background

FAH Independent Living provides 32 Specialised Supported homes in London, the South East and the Midlands to individuals with learning or physical disabilities and mental health issues. Prospective tenants, supported where appropriate by their relatives or carers, will have made a positive choice to live in the property and are likely to be long-term residents, in some cases until death.

It is estimated by JLL that less than 15% of those individuals who have this range of vulnerabilities are housed in this type of accommodation and yet this is the clear preference for government and social services. A range of local care providers have entered into nomination agreements with FPHA to tenant the properties with individuals who have been assessed by the local authority and whose safety and care are the responsibility of the local authority. The care contracts are renewable on a revolving five-year basis when the individuals care provision under the Care Act 2008 is reviewed. Care requirements often increase at these reviews because of increasing vulnerability with age.

When properties become temporarily vacant because of death or changed circumstances the local authority, local care provider, and FPHA work together to identify a suitable new tenant. The risk of vacancies rests with FPHA not FAH.

 

Social Delivery

The scope of the Independent Living project fits well with the social aims of FAH. A social screen completed in line with the FAH Social Performance Assessment Framework indicated a score of 405 out of 500, well above the hurdle level of 300. Such Specialised Supported Housing (SSH) provides housing and where necessary live-in care for people with learning disabilities, physical disabilities or mental health issues and aims to provide greater independence and dignity than institutional care.

The properties chosen are usually ordinary residential houses adapted to suit specific needs. For efficiency of care and to provide companionship a number of individuals (typically 3 to 10) may live in a single property with their own bedroom and where needs require their own toilet and bathing facilities. Shared living and cooking facilities encourage residents to socialise and gain new skills.

There is a high unmet demand for this type of supported living arrangement. FAH’s investment helps secure accommodation for more than 100 vulnerable adults.

Summary

This investment is of Specialist Supported Housing providing significant social benefit by allowing ‘care in the community’ and independent living for vulnerable adults. The Project combines excellent social delivery with an expected robust financial outcome.

It is intended that a regular dialogue will take place with First Priority Housing Association (FPHA) to ensure that the social delivery envisaged by this Project is being achieved.