A new long-term public-private partnership dedicated to delivering affordable housing has been unveiled, bringing together Pension Insurance Corporation (PIC), a leading investor in UK
housing and infrastructure, Muse, a national place maker, and Homes England, the Government’s housing and regeneration agency.
The collaboration, named Habiko, represents a £54 million joint venture aimed at developing 3,000 affordable, low-carbon, and energy-efficient rental homes. Over the next 12 years, Habiko will unlock institutional investment to become self-sustaining, while also diversifying the supply chain for future housing projects.
The goal of Habiko is to provide up to 100% affordable rental homes for individuals whose needs are unmet by the current market. These homes will be offered at rents 20% below local market rates. During the partnership’s lifespan, PIC will continue to forward fund the projects, eventually owning and managing the homes as part of its long-term stewardship and investment strategy.
The homes will be strategically built across England in areas with high demand for affordable housing. The developments will also generate social value, creating local economic opportunities through job creation and skill development, while promoting green innovation. Additionally, these homes will be located in accessible areas, close to employment, and designed to help residents save on energy costs.
Tracy Blackwell, CEO of PIC, highlighted the importance of collaboration: “Meeting the UK’s affordable housing needs is a challenge best addressed through effective partnerships between the Government, developers, and private investors. Habiko exemplifies this, delivering thousands of low-carbon, energy-efficient homes. PIC has already invested around £4 billion in social and affordable housing, supporting secure, long-term, inflation-linked returns for our policyholders while creating significant social value.”
Phil Mayall, Managing Director at Muse, emphasized the Government’s ambitious housing goals: “The Government has set an ambitious target to deliver a significant number of new affordable homes in the next five years. By working with PIC and Homes England, we can leverage our combined expertise to provide thousands of low-carbon, energy-efficient homes that serve communities nationwide.”
Peter Denton, Chief Executive of Homes England, underscored the significance of institutional investment: “Attracting institutional investment is crucial for building the new homes the country needs. This partnership combines Muse’s technical expertise with the financial strength of PIC, positioning PIC as a major contributor to delivering affordable, sustainable housing.”
