The Pension Insurance Corporation, Muse and Homes England have launched a joint venture with plans to deliver 3,000 low-carbon, low-energy affordable rental homes.
Habiko will become self-funding over its 12-year lifespan and aims to diversify the supply chain for future efficient housing developments. It is targeting up to 100% affordable homes at rents set at 20% below the local market rate.
During the lifespan of the partnership, PIC will continue to forward fund and ultimately own the homes and places.
Tracy Blackwell, chief executive of PIC, said: “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.
“PIC has invested around £4bn in social and affordable housing to date, helping provide the secure, long-dated, inflation linked cash flows to back the pensions of its policyholders over coming decades, creating considerable social value.”
Phil Mayall, managing director at Muse, said: “Working together with PIC and Homes England, we can bring together our collective resources and unique experience to deliver thousands of low carbon and low energy homes.”
Peter Denton, chief executive of Homes England, said: “This partnership brings 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.”
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