Homes England has partnered with developer Muse and institutional investor Pension Insurance Corporation (PIC) to form a £54m joint venture to build 3,000 low-carbon, energy-efficient homes to rent.
The public-private partnership, Habiko, is targeting up to 100% affordable homes for rent, with rents set at 20% below market levels.
During the 12-year lifespan of the partnership, PIC can continue to forward-fund the development of the affordable homes and will ultimately own the properties and places created through a long-term stewardship approach.
The homes will be built across England in areas of high demand rental housing and close to employment opportunities, and they will be designed to help residents save money on their energy bills.
Chancellor Rachel Reeves announced a £5bn package of measures to boost housing in last week’s Budget. Some £500m was earmarked to top up the Affordable Homes Programme, which is expected to deliver a further 5,000 homes.
Peter Denton, chief executive of Homes England, said: “Attracting institutional investment into the housing sector is critical to build the new homes the country needs.
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“This partnership supports our partners’ objective to deliver low-carbon, low-energy, affordable homes, bringing together the technical expertise and capability of Muse with the financial capacity of one of the UK’s largest pension fund insurers, cementing PIC as a significant force in delivering affordable housing.”
