National placemaker Muse has announced a long-term public-private partnership to deliver 3,000 low-energy affordable homes.
The joint venture between Homes England and Pension Insurance Corporation (PIC) and Muse, named Habiko, aims to deliver the low-carbon, low-energy homes for the rental market, unlocking institutional investment.
Habiko will also become self-funding over its 12-year lifespan and aims to diversify the supply chain for future efficient homes.
The joint venture is targeting up to 100 per cent affordable homes for rent for those whose needs are not met by the market, with rents set at 20 per cent below the local market rent.
This comes as total investment in housing supply has been increased to over £5 billion with a £500 million injection into the current affordable homes programme following Labour’s first budget since they took office.
During the partnership’s lifespan, PIC will be able to continue to forward fund the development of the affordable homes.
PIC will eventually own the homes and places they have helped to create through its investment and long-term stewardship approach.
The homes will be built across England in areas of high demand for this type of housing, aimed at creating social value for communities, including through job creation and new skills for green innovation.
Phil Mayall, managing director at Muse, said: “The Government has set out a bold and ambitious challenge to deliver a significant number of new affordable homes over the next five years.
“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 which, by working alongside our local partners, meet the needs of communities across the country.”
Tracy Blackwell, PIC CEO, said: “Meeting the UK’s affordable housing needs is a challenge that is best met through effective collaboration between Government, developers, and private investors.”
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 PIC as a significant force in the financing of affordable housing.”
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