By Christian Woollard, CEO of Unique Properties Investment Group

Over the past few years, property investors have been drawn to the promise of high-yield, socially responsible investment opportunities—none more so than social housing. The idea of steady government-backed returns while addressing the UK’s housing crisis was an easy sell. But as we’ve all seen, not every investment in this space has been as secure or ethical as promised. A string of high-profile collapses in the social housing sector has left investors burned, tenants displaced, and serious questions about whether private investors should be involved in social housing at all.

Now, assisted living investment is gaining attention, and some investors are understandably wary— wondering if it’s just another version of the social housing model. The truth? Assisted living and social housing couldn’t be more different. Understanding these differences is critical to making informed, ethical, and financially sound investment decisions.

What Went Wrong with Social Housing Investment?

On paper, social housing investment looked like a win-win. Buy a property, lease it to a housing provider, and receive reliable, government-backed rent payments. Minimal involvement, predictable income, and a noble cause—what’s not to like?

Unfortunately, the reality has been far messier. Unregulated schemes, overpromised returns, and mismanaged housing providers have left many investors out of pocket. Some were tied into bad leases with providers who defaulted on payments, while others watched as their investments collapsed under regulatory loopholes and financial mismanagement.

The bad actors have tarnished the sector’s reputation, leading many to question whether private investors should be profiting from social housing at all. We saw this coming. In fact, at Unique Property Group, we spent much of 2024 actively warning against rent-to-rent social housing strategies because we could see the risks stacking up​.

So, where does that leave assisted living?

While both social housing and assisted living address housing shortages, assisted living is fundamentally different in structure, revenue model, and regulation.

A Service-Driven Model

Social housing is about providing affordable accommodation, but assisted living is about providing care. We’re talking about housing for those who need support with daily activities—whether that’s older adults, those with physical disabilities, or individuals with learning difficulties. Investment in assisted living isn’t just about leasing out properties; it’s about partnering with specialist care providers who deliver essential services.

Diversified Revenue Streams

A big weakness in some social housing investments is that they rely entirely on government housing subsidies. If policies change or funding gets cut, investors are left exposed. Assisted living investments, on the other hand, have multiple revenue streams. In addition to rental income, it also includes care services fees paid by local authorities or private individuals and long-term government-backed funding for supported living arrangements.

This diversified income model means investors are not solely reliant on housing benefit payments, reducing financial risk.

Operator Accountability Matters

One of the biggest downfalls of some social housing investments has been a lack of due diligence on housing providers. In assisted living, care providers must meet strict compliance standards set by the Care Quality Commission, ensuring higher oversight than social housing investment schemes.

Investors should still be discerning—choosing a reputable, financially sound care provider is essential—but the regulatory framework ensures a level of accountability that has been missing from social housing investments.

Why Assisted Living Can Be an Ethical and Sustainable Investment

Critics argue that profiting from vulnerable people’s housing needs is unethical. And in the case of poorly managed social housing schemes, they have a point. Some investors, knowingly or not, extracted large profits from government subsidies while delivering substandard housing.

But assisted living, when done right, actually enhances the quality of life for residents. It provides purpose-built or adapted accommodation, specialist support, and long-term stability for individuals who need it most.

What Should You Do?

If social housing investment scandals have taught us anything, it’s that not all “government-backed” property investments are created equal. Assisted living should not be lumped into the same category. It is a service-based, regulated model that requires careful due diligence but offers long-term rewards.

If you’re thinking about investing in assisted living, the key is working with the right partners—those who prioritise sustainable housing solutions, transparency and has a diversified approach to protect your investments. Remember, when structured correctly, assisted living is not just an investment—it’s an essential part of the UK’s evolving care infrastructure.