Pension Insurance Corporation (PIC), Muse and Homes England have launched a new public-private partnership called Habiko which will deliver 3,000 low-carbon, low-energy affordable rental homes.
Over its 12-year lifespan, Habiko will become self-funding and will diversify the supply chain for future efficient housing developments.
Habiko is targeting up to 100% affordable homes for rent for those whose needs are not met by the market, with rents set at 20% below the local market rent. The homes will be built across England in areas of high demand for this type of housing.
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. PIC has invested around £4bn in social and affordable housing to date, helping provide the secure, long-dated, inflation linked cashflows to back the pensions of its policyholders over coming decades, creating considerable social value.
Phil Mayall, managing director of Muse, added: “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.”
