Why Supported Living Investments Stayed Strong Through Every Crisis
- Supported Living Invest
- Jan 20
- 3 min read
In property investment, it’s rare to find a sector that not only survives a crisis, but continues to perform almost untouched. Yet that’s exactly what happened with supported living during COVID‑19, the cost‑of‑living squeeze, and even the sharp rise in interest rates over the last few years.
While many landlords struggled with rent arrears, void periods, rising mortgage rates and falling yields, supported living quietly demonstrated something powerful:
When the country is under pressure, the need for supported accommodation increases and government‑backed funding keeps flowing.
Let’s break down why this sector remained so resilient, and why investors today are treating supported living as one of the most stable property strategies in the UK.
Supported Living Has Been Here All Along — And It’s Government‑Backed
Supported living isn’t new. It’s a formally recognised part of the UK’s housing and care system. Local authorities and the Department for Work and Pensions have long funded rent for tenants in supported and exempt accommodation through Housing Benefit and Universal Credit.
So when COVID hit, and the UK shut down, this funding didn’t stop. It didn’t reduce. It didn’t freeze.
It continued because vulnerable people still needed safe, supervised housing.
This automatic continuity is one of the biggest reasons the sector stayed stable through every major challenge of the last five years.
The COVID-19 Test: Supported Living Passed With Flying Colours
COVID was the ultimate stress‑test for property investors.
Commercial landlords faced closures. Retail landlords saw tenants default. Many private landlords experienced arrears, vacated properties and rent holidays.
But supported living properties? They continued receiving rent — often at nearly 100% collection rates.
Two of the UK’s largest specialist social housing REITs publicly reported almost perfect rent collection throughout the pandemic. Their income didn’t dip, their dividends didn’t stop, and their portfolios stayed fully operational.
Why? Because the rent is government-backed and paid via established welfare systems that continued uninterrupted.
In other words:
Even when the world closed, supported living income didn’t.
The Cost‑of‑Living Crisis Increased Demand — Instead of Reducing It
As inflation soared and living costs spiked, many households fell into arrears, and homelessness pressures increased. Local authorities across the UK reported rising
demand for supported accommodation due to:
higher private rents
increased evictions
lack of affordable housing
greater vulnerability among low‑income households
Supported living units became even more essential, with councils needing safe, staffed accommodation more than ever.
For investors, this meant high occupancy, consistent funding, and long‑term need.
This is one of the few areas of property where a crisis actually strengthens the demand side.
Rising Interest Rates Hurt Mortgaged Landlords — But Not Cash‑Only Supported Living
From 2022 onwards, interest rate hikes hit buy‑to‑let landlords hard. Mortgage payments rose. Yields were squeezed. Some landlords sold up entirely.
Supported living investors didn’t face the same pressure — especially those buying cash‑only, like the opportunities offered by City & Countrywide.
Even better, most supported living leases are:
long‑term
inflation‑linked
fully repairing and insuring (in many cases)
held by government‑funded providers
So while the mortgage‑based PRS market struggled, supported living investors enjoyed:
predictable income
no exposure to rising rates
stable contractual rent
tenants backed by public funds
It’s hard to beat that level of insulation in today’s economy.
A Sector the Government Continues to Prioritise
Across multiple government reviews and spending updates, one theme keeps coming up:
The UK desperately needs more supported housing.
There is a national shortfall of these units, and demand significantly outstrips supply. Local authorities consistently highlight supported living as essential infrastructure not optional housing stock.
This is why funding hasn’t just continued, it has increased across adult social care and supported living services over the last few years.
For investors, that means long‑term stability built directly into the system.
What This Means for Investors Today
Supported living has proven itself to be:
✔ Crisis‑resistant
Income remained stable through COVID, inflation, and rising interest rates.
✔ Government‑backed
Rent flows through public funding systems that continued uninterrupted even during national lockdowns.
✔ High‑demand
Economic pressure has only increased the need for supported accommodation.
✔ Cash‑only friendly
No mortgages. No volatility. No lender stress.
✔ Ethical and profitable
You’re helping vulnerable people access safe, supported housing — while earning stable, predictable returns.
It’s one of the rare places in property where doing good overlaps with strong financial performance.
Want to Explore Supported Living Investments?
At City & Countrywide, we specialise in sourcing cash‑only, government‑backed supported living opportunities that offer long‑term, hands‑off rental income and strong social impact.
If you'd like to learn more or see our current availability:
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