You are viewing 1 of your 1 free articles
New public-private partnership to build 3,000 rental homes
The government has announced a new development vehicle that will aim to build 3,000 low-carbon and affordable rental homes across England.
The joint venture, called Habiko, is a long-term project between the government’s housing agency Homes England, the Pension Insurance Corporation (PIC) and developer Muse.
With a focus on the rental market, the partnership is aiming its homes at those whose needs are not met by the market, with rents set at 20% below the local market price.
Habiko will become self-funding over its 12-year lifespan and says it aims to diversify the supply chain for future “efficient housing developments”.
READ MORE
According to the announcement, the PIC will have the ability to continue to forward fund the development of the affordable homes during the partnership’s lifespan and will ultimately own the homes.
The homes will be built across England in areas where demand for affordable rent is high, and in accessible locations, close to employment opportunities.
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.
“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 [the] PIC as a significant force in delivering affordable housing.”
Tracy Blackwell, chief executive of the PIC, added: “Meeting the UK’s affordable housing needs is a challenge that is best met through effective collaboration between government, developers and private investors. Habiko is a great example of public-private partnership, which brings forward thousands of low-carbon, low-energy affordable homes.”
Earlier this year, Muse was selected as the development partner for Manchester City Council’s £500m regeneration of Wythenshawe town centre, which is expected to deliver more than 1,750 new homes.
Sign up for our development and finance newsletter
Already have an account? Click here to manage your newsletters
