Long-term public-private partnership to deliver thousands of affordable homes
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A significant long-term public-private partnership, focused on
affordable housing delivery, has been announced by Pension
Insurance Corporation, a major investor in UK housing and
infrastructure, nationwide place maker, Muse, and Homes England,
the Government's housing and regeneration agency. The new
public-private partnership, named Habiko, is a joint venture that
plans to deliver 3,000 low-carbon, low-energy affordable homes for
the rental market, unlocking...Request free trial
A significant long-term public-private partnership, focused on affordable housing delivery, has been announced by Pension Insurance Corporation, a major investor in UK housing and infrastructure, nationwide place maker, Muse, and Homes England, the Government's housing and regeneration agency. The new public-private partnership, named Habiko, is a joint venture that plans to deliver 3,000 low-carbon, low-energy affordable homes for the rental market, unlocking institutional investment. Habiko will become self-funding over its 12-year lifespan and aims to 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. During the 12-year lifespan of the partnership, PIC will have the ability to continue to forward fund the development of the affordable homes and will ultimately 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. The developments aim to create social value for these communities, including boosting the local economy through job creation and new skills to drive green innovation. The homes will be in accessible locations, close to employment opportunities and be designed to help residents save money on their energy bills. 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 £4 billion 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 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. Notes to Editors For more information about Habiko please visit www.habiko.uk About Homes England Homes England is the government's housing and regeneration agency. We believe that affordable, quality homes in well-designed places are key to improving people's lives. We make this happen by using our powers, expertise, land, capital and influence to both – bring investment to communities and get more quality homes built. https://www.gov.uk/government/organisations/homes-england About PIC The purpose of PIC is to pay the pensions of its current and future policyholders. At half year 2024 PIC had insured 348,600 pension scheme members and had assets of £47.7 billion, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. PIC has made pension payments of more than £15 billion to its policyholders, with a customer satisfaction rating of 99%, and has invested more than £13 billion in the UK infrastructure and housing, including in urban regeneration projects, social housing, and renewable energy, creating considerable social value. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com About Muse – the nationwide placemaker The nationwide placemaker, Muse, has 40 years of experience creating mixed-use communities across the UK. Our track record of leading complex, mixed-use regeneration gives us the experience to deliver successful places, with the emphasis on sustainability, community and quality. We're working with partners across the UK with more than 2000 new homes and over 600,000 sq ft of commercial space under construction over the past 12 months, with a gross development value of £877m. We combine local insight with the resources and capabilities of a nationwide organisation. Our regional teams are based in Manchester, Leeds, London and Birmingham. As part of Morgan Sindall Group, we have the financial strength of a leading UK construction and regeneration group with an annual revenue of £2.2bn Our focus is on strong partnerships in the many places we work across the UK and our national strategic joint ventures, ECF - with Legal & General and Homes England - and Waterside Places with the Canal & River Trust. We're building a brighter future, together. |