Why High-Net-Worth Investors Are Rethinking Traditional Property And Turning to ALUs

by | May 29, 2025 | Investment | 0 comments

Andrew Ritchings is a Family Office Consultant and Private Investor at Thomas Kelly Holdings

For years, prime real estate has been a cornerstone of high-net-worth portfolios. But with rising regulation, tenant risk, and diminishing yields, many investors are reconsidering where true stability lies.

That’s where Assisted Living Units (ALUs) are gaining quiet traction offering a property-backed model designed for income certainty and long-term peace of mind.

What Are ALUs?

ALUs are adapted residential homes leased to care providers who house individuals with support needs. These leases are typically long-term, backed by government or social funding, and professionally managed end-to-end.

Why Investors Are Making the Switch

  • 10–25 Year Leases
    Secured with supported housing operators, no short tenancies, no surprises.
  • Zero Tenant Management
    Operators handle compliance, tenants, and upkeep. Income is passive and predictable.
  • Inflation-Linked Returns
    Many leases include CPI or RPI increases, a built-in hedge against inflation.
  • Purpose-Driven Income
    ALUs contribute to solving the UK’s housing and care shortfall, aligning investment with real-world impact.

Rethinking “Safe” Investments

Buy-to-let now comes with rising costs, void risks, and shifting legal frameworks. In contrast, ALUs offer contractual certainty, strong ESG alignment, and hands-free income without sacrificing return on capital.

The Bottom Line

Today’s market demands more than just asset growth, it requires resilience with purpose.

ALUs are offering exactly that: secure, socially valuable income built for the next decade of investing.

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