Octopus Capital is backing a 113-home sustainable housing scheme in Epping Forest, Essex, known as Carpenters Yard.
The project is led by gs8 and supported with a £20m loan from Octopus Capital’s Greener Homes Alliance.
The scheme is also a joint effort with Homes England and aims to help small and medium-sized enterprise (SME) developers build more sustainable homes by offering lower financing costs for green projects.
Every home will be fitted with a heat pump and solar panels, with energy managed and stored through a central battery system.
The site is designed by gs8 to follow zero waste principles and store more carbon than it produces.
Shared spaces will include landscaped gardens, play trails, allotments, a grocery, café, fitness centre, and a community hub.
There will also be an electric car and bike club with Volt and a communal DIY and reuse centre.
Octopus Capital is working with Octopus Energy to create a ‘Zero Bills’ microgrid, where residents will have no energy bills for five to 10 years.
The Octopus Affordable Housing Fund will acquire 35 of these homes through its registered provider, NewArch Homes, to offer affordable rents and low living costs.
The acquisition comes after the Fund raised an extra £118m, bringing total commitments to over £360m.
Jack Burnham, head of affordable housing at Octopus Capital, said: “This acquisition demonstrates the powerful role long-term capital can play in transforming housing.
“By combining institutional investment, government-backed finance, and cutting-edge homebuilding innovation, we’re proving that affordability and sustainability can go hand in hand.
“Our ‘Zero Bills’ investment is not just a first for the sector – it’s a glimpse into the future of housing.”
Josh Gordon, co-founder at gs8, said: “At gs8, we’re driven by a clear purpose that housing should have a positive impact – on people, place and planet.
“This partnership with Octopus Capital and Octopus Energy brings that vision to life.
“Together we’re proving that sustainable innovation doesn’t have to come at a premium – it can set a standard for how homes are built and lived in for generations to come.”
