The Pension Insurance Corporation (PIC), Muse, and Homes England have launched a £54m joint venture named Habiko, aimed at delivering 3,000 low-carbon, low-energy affordable homes for rent.
The long-term public-private partnership will focus on addressing affordable housing needs across England, particularly for those underserved by the market.
Habiko was created to provide up to 100% affordable homes for rent, setting rents at 20% below local market rates.
Over its 12-year lifespan, the partnership will become self-funding, allowing PIC to continue investing in the development of affordable homes that it will ultimately own through its long-term stewardship approach.
The homes will be constructed in high-demand areas throughout England, designed to save residents money on energy bills while boosting local economies through job creation and skill development.
Tracy Blackwell, CEO 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.”
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.”
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 delivering affordable housing.”
