The Government is to become a significant provider of affordable private sector rental homes with plans to build some 3,000 units under a new name, Habiko.

These homes, which will be built across England, will be low-carbon and low energy and funded by the Pension Insurance Corporation (PIC), built by construction firm Muse and organised by Homes England, the Government’s housing and regeneration agency.

The ’public/private partnership’ which will rent out all its homes, says it will be self-funding within 12 years. All the Habiko properties will be for renters who cannot afford market rents and will be 20% under the local market rate.

The homes will be built in areas where there is high demand for this type of housing, close to employment opportunities and be designed to help residents save money on their energy bills.

Challenge

“Meeting the UK’s affordable housing needs is a challenge that is best met through effective collaboration between Government, developers, and private investors,” says Tracy Blackwell, CEO of PIC (pictured).

Peter Denton, Chief Executive of Homes England, adds: 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.”

“Habiko is a great example of public-private partnership, which brings forward thousands of low-carbon, low-energy affordable homes.”