What is a Social Housing Warranty?

When building social housing properties, builders, developers, and housing associations should always ensure they have the correct insurance or warranty to protect against any problems. A social housing warranty is the perfect cover for social housing new-builds or regeneration projects.

But what is a social housing warranty, and how does it work when needed?

Social housing warranty explained

A social housing warranty is an insurance policy designed to offer financial security for social housing construction projects for housing authorities and registered social landlords. It safeguards all involved parties, extending protection and providing additional cover for 10 to 12 years.

It guarantees that the properties being built or regenerated are safe for occupancy and eliminates the liability risks associated with structural issues that could emerge later.

Social housing warranties also cover the entirety of the property as outlined in the Post-Completion Certificates. This includes the main structure, drainage systems, and non-load-bearing components.

A social housing warranty also offers the necessary funding to complete a project, which can help increase the value of the properties once completed. Should anything unforeseen happen to the builders, such as poor health, death or ceasing to trade, a social housing warranty can offer financial cover to complete the development.

Also, social housing warranty cover includes regular inspections of a social housing development from surveyors at key stages of the building process. This ensures that the property adheres to certain safety and building standards.

What type of coverage can housing associations get from a social housing warranty?

Social housing warranties are not all the same, and specific policy details can differ based on individual contracts. However, a social housing warranty typically features transferability and structural element coverage.

What is structural element coverage?

Structural element coverage is a type of structural warranty insurance, which means the social housing warranty will cover a partial or full reconstruction if a structural element of the properties experiences significant failure.

What is transferability?

Transferability means that the warranty is assignable, which allows for a no-risk transfer to new social landlords or tenants throughout its 10 or 12-year duration.

How to apply for a social housing warranty

If any property developers or housing authorities are planning social housing developments, it’s a good idea to get the cover. To apply for and be granted a social housing warranty, one must provide the following information at the application stage:

Developer experience
Overview and plans for the development
Information on unit type and quantity
Full estimate of costs for the project
Estimated total property sales price

Failure to provide all of these details will result in a quote being denied, so developers must have all the right information and planning in place.

To be eligible for a social housing structural warranty, completed projects must be intended for social or affordable rent purposes, either as dedicated social housing units or as mixed-use projects.

What is classed as a social housing property?

Social housing properties are classed as lower-cost rented housing that’s provided by housing associations or registered social landlords. Social housing is often cheaper than private renting and can offer a lot more security from eviction.

For individuals who require an accessible or adapted property, social housing can provide a suitable option.

Contact ABC+ Warranty for a social housing warranty

If you’re a developer or housing association with big plans in mind for a housing development and you require social housing cover, we can help you.

At ABC+ Warranty, we specialise in providing social housing and structural defects warranty cover for a wide range of developments. So, if you are planning an affordable housing development and need the necessary funding and insurance, speak to us and find out how we can help you.

Start by requesting a quote from our website or contact us by calling 0161 928 8804 or emailing info@architectscertificate.co.uk.