When a seasoned landlord with a strong background in lettings decided to move beyond traditional property investments, he envisioned a venture that not only provided financial stability but also made a meaningful contribution to society. His plan? To lease a C2-designated children’s home to a trusted care provider. While familiar with property management, he needed the expertise to navigate the unique requirements of supported housing. That’s where Prem Property came in.
This case study follows the journey of how we helped this landlord transform a refurbished property into a safe, high-spec home for vulnerable children, all while ensuring long-term financial success.
Our client, a seasoned landlord with extensive experience in lettings, wanted to diversify his portfolio beyond the traditional buy-to-let model. Instead of focusing solely on financial returns, he wanted to align his next investment with a higher purpose. Recognising the increasing demand for specialist supported housing, he set his sights on leasing a property for use as a children’s home. This type of investment, he believed, would allow him to generate a steady income while making a tangible difference to vulnerable children in need of care.
Although well-versed in the property sector, this was his first foray into the world of C2 children’s homes. He knew he needed the right partner to help navigate the complexities of this specialised sector. That’s where we came in. With our experience in property procurement and a strong understanding of the care sector, we were able to guide him every step of the way.
The property in question was a spacious detached home located in the West Midlands. The house offered:
6 bedrooms
2 reception rooms
7 bathrooms
A good-sized garden
Off-road parking for 3+ vehicles
While the house had the right C2 use class for a children’s home, it had been vacant for six months, despite recent refurbishment. Although the property was in good condition, there were some minor cosmetic improvements required to make it ideal for a care setting. The main challenge, however, was the parking. With up to five young residents and potentially three support workers per child, the parking space needed to be upgraded to accommodate up to 15 vehicles.
Despite these challenges, the property had plenty of potential. Its spacious layout and location made it well-suited to be converted into a children’s home, offering ample space for residents and staff alike. It was now up to us to help the landlord unlock that potential and make the necessary adjustments to ensure the property met the specific needs of a care provider.
From the outset, we recognised the significance of this project for both our client and the local community. After assessing the property, we advised the landlord to adjust his rental expectations to reflect the demand for C2 properties in the children’s care sector. We also highlighted the property’s unique features, ensuring that the landlord was aware of the potential to secure a higher rent due to the specific demand for children’s homes.
One of the key factors in ensuring this project’s success was community engagement. Despite the property being detached, we knew the importance of building positive relationships with the surrounding neighbours. We proactively reached out to them, explaining the intended use of the property and addressing any concerns they might have. This helped establish goodwill and transparency from the outset, fostering trust between the landlord and the local community. By keeping them informed, we were able to avoid any potential opposition and build a sense of support around the project.
With the property positioned as a C2 children’s home, our next step was to find the right care provider to lease the property. We were mindful of the fact that this was a sensitive project, so we only reached out to reputable care providers who had experience managing children’s homes. After identifying a shortlist of providers, we put together a tailored media pack, showcasing the property’s key features, layout, and potential for adaptation to meet the needs of a children’s care facility.
The media pack wasn’t just informative – it was designed to inspire. We wanted to help potential providers visualise how they could transform the property into a therapeutic space for vulnerable children. One provider immediately expressed interest, and after reviewing the property, they provided positive feedback. They also requested permission to make some minor adjustments to the property, including painting, changes to flooring, and the addition of new soft furnishings. This collaborative approach ensured the property would meet the care provider’s internal standards and requirements.
What made this project particularly successful was the strong working relationship between Prem Property and the landlord. As an experienced lettings professional, the landlord understood the importance of negotiation and compliance. This made the entire leasing process run smoothly and efficiently. The landlord was also quick to make decisions and was receptive to our expert advice throughout the process.
Once we had agreed on the rental terms, we settled on a revised figure of £600 per room per month. This was a fair price that reflected the property’s suitability for use as a children’s home and met the care provider’s budget. The landlord, having his own estate agency, opted to manage the property directly, which streamlined the process and allowed him to retain control over the property management. This arrangement worked well for all parties and ensured the project ran smoothly from start to finish.
In the end, the project was a resounding success. The landlord achieved his goal of securing long-term, stable income through a purpose-driven investment. Leasing the property to a care provider not only generated a reliable income stream but also fulfilled a significant social need by providing accommodation for vulnerable children. The care provider, on the other hand, gained a high-spec property that was adapted to meet the needs of their residents.
The local community was kept in the loop throughout the process, thanks to our proactive engagement efforts. This ensured that the property’s new role as a children’s home was embraced, rather than met with resistance. The entire process was a win for everyone involved, from the landlord to the care provider to the local community. It also became a prime example of how social impact and financial success can go hand in hand in the property sector.
This case study has provided several valuable insights:
Community engagement is crucial: By keeping the local community informed and involved, we were able to avoid potential conflicts and create a positive atmosphere around the project.
Collaboration is key: The partnership between Prem Property and the landlord was essential to the project’s success. The landlord’s experience, combined with our knowledge of the care sector, ensured that the process was smooth and efficient.
C2 children’s homes offer a strong investment model: With the right care provider, C2 properties can provide both a stable income and an opportunity to make a positive social impact.
Looking ahead, this project has paved the way for future collaborations. Prem Property continues to work with the landlord to identify more properties suitable for supported housing, expanding his portfolio and continuing to make a difference in the care sector. This successful children’s home project has become a blueprint for future landlords looking to enter the social care property sector, proving that purpose-driven property investments can lead to both financial success and social impact.
