Octopus Capital has agreed a forward funding deal with Vistry to deliver 82 affordable homes in Northam and Bideford, North Devon.
The investment was made through the Octopus Affordable Housing Fund, which invests long-term capital to support the delivery of affordable homes across the UK.
The scheme also received grant funding from Homes England.
All the homes will be affordable, converting what would have been private sale homes into social rent, affordable rent, and shared ownership to offer a range of options for the community.
The scheme includes 238 beds within 82 energy-efficient homes, all meeting Energy Performance Certificate (EPC) B standards and being fossil fuel free, with air source heat pumps providing the energy.
The homes range from two to four bedrooms, catering to couples and growing families.
Octopus Capital will work with Torridge District Council to advertise the rental homes via Devon Home Choice, ensuring priority for applicants with local connections.
The homes are being delivered on a freehold basis, with construction already underway.
The first homes are expected to complete in spring 2026, with the final ones due by summer 2027.
NewArch, owned by Octopus, will be the long-term landlord, with housing management handled by Pinnacle once construction finishes.
Ellie Vlavianou, investment director at Octopus Capital, said: “These are two fantastic sites that will create real opportunities for people and families to put down roots in their local community.
“We’re very proud to be working with trusted partners to deliver high-quality, sustainable homes where they’re needed most.
“We’re also excited about the potential to grow our partnership with Vistry as we both look forward to delivering more schemes like this across the country.”
Claire Hodson, Deputy Leader and Lead Member for Homelessness and Housing Need, Torridge District Council, said: “Thanks to influx of government and private funding, registered providers are picking up additional units across the district.
“NewArch will provide homes alongside other social housing providers already working on these strategic sites.
“This is particularly welcome as in recent years we have struggled to achieve our local plan target of 30% affordable housing on many sites due to developer viability issues.”
Hodson added: “With around 1,400 households on the housing needs register, and 50 or more Devon Home Choice bids for each new affordable home, the need for affordable, good quality homes is critical.
“The addition of 82 more affordable, social homes on Bideford sites is welcomed.”
Oliver Grieve, partnerships housing manager at Vistry, added: “Vistry is pleased to be partnering with Octopus Capital and NewArch Homes to deliver 82 much-needed, affordable homes across two sites in North Devon.
“These homes will combine thermal efficiency along with high design standards, helping to reduce energy costs for residents while contributing to the wider housing needs of the local community.
“We look forward to building on this partnership to deliver even more affordable housing with Octopus and NewArch Homes.”
