Property Spotlight: 7.3% Yield on Orchard Close, Kingsteignton (near Newton Abbot)

Welcome to the latest edition of our Property Spotlight series, where we highlight established opportunities on the Housemartin Exchange that pair reliable, government-backed returns with life-changing social impact.

This month, we are focusing on Orchard Close (#127 – Newton Abbot, Devon), a premium supported living property situated in Kingsteignton, near Newton Abbot, Devon. Leased to national charity United Response, this asset delivers robust financial performance while providing a vital, long-term home for its two residents, Jane and Dom.

Social Impact: A Forever Home for Jane and Dom

At Housemartin, we believe capital should deliver both profit and purpose. Orchard Close is more than just a yielding asset; for the last five years, it has been the forever home for its two tenants, Jane and Dom who have learning disabilities.

Before moving to Orchard Close, Jane and Dom lived at a property on Powderham Road in Newton Abbott that had fallen into disrepair. Moving to this spacious, detached bungalow has given them an incredible step forward in their quality of life. Jane has a lovely, large bedroom complete with her own en-suite bathroom, offering a private, comfortable retreat.

The heart of the home is its expansive kitchen and dining area, which provides the perfect space for entertaining. Jane and Dom love bringing friends and family together for celebrations, special occasions, and summer BBQs.

The home also serves as a launching pad for active, fulfilled days in the wider community:

• Out & About Across Devon: Because they have their own car, living near Newton Abbot gives them effortless access to their favourite spots—taking regular day trips out to explore the Dartmoor moors or enjoy the Devon coastline. In fact, when our team visited the property, Dom was out enjoying an afternoon trip to a local farm!
• Personality & Independence: Backed by United Response’s dedicated support team, both residents thrive in their own routines—whether it’s Jane passionately cheering on the Boro (Middlesbrough FC) as a dedicated football fan, or Dom good-naturedly moving things around the house to keep staff and housemates on their toes.

Your investment directly sustains the physical foundation and security that allow Jane and Dom to live happy, self-determined lives.

Reliable Returns & Strategic Asset Class

Orchard Close provides a highly defensive real estate investment delivering a strong 7.3% yield.

The property is secured on a long-term lease to United Response running through to February 2028. Because the rental income is funded directly through local authority Housing Benefit exempt rent allocations, investors are insulated from private tenant default risks, void periods, and standard letting agent fees.

Furthermore, Orchard Close is a detached bungalow comprising 115 square metres of lateral living space. In the supported living sector, bungalows are considered a “premium asset class” due to their inherent accessibility. This single-storey layout makes the property highly versatile, ensuring it can safely accommodate residents with a wide range of physical or mobility needs, underpinning long-term tenant demand and high occupancy resilience.

Capital Buffer: Trading £25,000 Below Hometrack Valuation

Alongside its attractive income yield, Orchard Close offers immediate capital downside protection at its current entry price:

• Independent Valuation: The property carries an independent Hometrack valuation of £380,000.
• Discounted Exchange Price: The loan is currently trading on the Housemartin Exchange at £356,000 (6.3% discount).
• Downside Security on Sale: With the underlying property independently valued at £380,000, entering the investment at £356,000 provides a £24,000 asset cushion if the property ever had to be sold in the future to return capital.

Upcoming February Inflation Review: Built-In Yield Expansion

A distinct near-term catalyst for Orchard Close is its contractual annual rent review scheduled for February with the December CPI figure being used to calculate the increase. 

With inflation on the rise, this could easily see the yield increase by 0.2-0.3% or possibly more, pushing the overall yield above 7.5% within a few months.

Established Lease Partner: United Response

Orchard Close is leased directly to United Response (Charity No. 265249), a national charity with over 50 years’ experience supporting people with learning disabilities, autism and mental health needs.

• Substantial financial resources: Its March 2025 audited accounts report group income of £106.7 million, with the parent charity holding approximately £16.7 million in net assets and £12 million in cash.
• Ongoing financial oversight: These resources provide a meaningful financial cushion. While the group reported a deficit, this reduced significantly from the previous year. Housemartin continues to monitor its financial position.
• Top-Tier Regulatory Standards: Reflecting their standard of care, over 94% of United Response services are rated “Good” or “Outstanding” by the Care Quality Commission (CQC), consistently outperforming the wider social care sector average.
• Buildings insurance reimbursement: Buildings insurance costs are reimbursed by United Response in accordance with the lease, helping protect the landlord against premium increases.

Future-Proof EPC Rating & Regulatory Shield (Band C)

Energy efficiency compliance has become one of the most critical risk factors for UK property investors. Orchard Close provides immediate peace of mind:

• Current Rating of Band C (Score 71): The property already holds an official EPC Rating of C (valid until July 2029), sitting well above the average domestic rating of D (Score 60) across England and Wales. It benefits from cavity wall insulation, double glazing, and low-energy lighting.
• Upside Pathway to Band B (Score 84): The official EPC assessment identifies a straightforward pathway to elevate the property into band B through targeted future enhancements such as solar PV panels, keeping utility overheads low and bolstering long-term capital appeal.

Key Investment Highlights

• Established 7.3% Yield: Strong, reliable income backed by government housing funding.
• EPC Band C (Score 71): Already meets proposed 2030 MEES regulatory standards, with potential to reach band B.
• Premium Asset Class: A highly sought-after bungalow layout (115 m²), maximizing long-term accessibility and tenant demand.
• Grade 1 Counterparty: Let to United Response, a top 100 UK charity with £106m+ turnover and 50+ years of operational history.
• Strategic Devon Setting: Located in Kingsteignton, near Newton Abbot, offering a quiet residential neighbourhood with excellent road connectivity and countryside access.
• High Social Impact: Directly facilitating independent, community-based living for Jane and Dom.

If you have any questions about this property or would like to discuss adding it to your portfolio, please reply directly to this email or contact our team on 0333 011 9830.