Alternative property developments tipped to flourish ...

An investment platform is backing two of the more unusual property sectors - short lets and assisted living - as good bets for 2024.

LH1 Global claims assisted living developments provide essential high-quality secure housing for those with mental health conditions and disabilities, however, there is a need for private investors to acquire these units and provide the funding to ensure housing associations can operate successfully.

It says there is an opportunity for investors to benefit from these excellent returns and this is what will be enticing for some but there is also the chance to be behind something that really makes a difference.

The key benefits to investors in assisted living homes, it suggests, include starting NET yield of 10 per cent; upward only annual rent review; secure tenancies with no void periods; no service charge commitment and no maintenance costs.

In terms of short lets, it says these provide investors with exceptional returns, with average yields ranging between 12 and 20 per cent.

Homes with short let potential have played a significant role in supporting the buoyancy of the UK housing market since the pandemic, with their popularity driven due to factors such as tourists requiring larger accommodation while visiting for an extended period of time, whilst they are also useful for those on a corporate stay/temporary secondment or homeowners seeking an alternative residence while renovations or refurbishments are taking place at their principal accommodation.

Short-term rentals have reshaped the housing landscape, offering landlords an investment that ensures greater freedom, flexibility, and higher profits compared to traditional long-term buy-to-lets, says LH1 Global.