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Since launching in 2018, we have grown our temporary modular housing business, Hugg Homes, with 22 units tenanted in Southampton (six to Southampton Council) and 32 to Broxbourne Council. These 54 tenanted homes produce a gross rental income of about £500,000 a year.
Hugg Homes provides local authorities and other partners with a high-quality alternative to bed and breakfast or hostel accommodation, at a considerable saving to the taxpayer, while putting to good use brownfield land waiting for planning permission and construction to commence. Councils across England spent nearly £1bn in 2017-18 on temporary accommodation, indicating significant market for Hugg Homes which are leased in line with local housing allowance rates.
Every Hugg Home is constructed and designed to a consistently high standard and is compliant with building regulations (BBA certified minimum 60 years).
There are fitted kitchens with integrated appliances, a fully tiled contemporary shower room, electric heating, private lockable storage, private access and parking. The homes are well insulated which ensures high energy efficiency (EPC rating C) and good acoustic performance, with minimal noise transfer.
Six months after moving into their Southampton homes, we surveyed tenants to learn more about their experience of living in a Hugg Home. The results were exceptional, with 100% stating they would recommend Hugg Homes to a friend, 100% rating the design and quality of fixtures and fittings at 3/5 or higher and 100% rating value for money at 3/5 or higher (with an average score of 4.2/5).
Resident Lauren Harrison-Short commented:
My Hugg Home is brilliant for what I need. The interior is high quality, the design is great and it all feels very well put together. The people I’ve met here are friendly and it feels like a real community."
Resident Alan Chorley added:
I have stayed in lots of rented accommodation over the years and Hugg is very good quality. The rented houses we had in the past were expensive and landlords were putting the prices up every six months. Our Hugg is ideal for us and has everything we need. "