A major new public-private partnership aimed at delivering affordable, sustainable housing has been launched by Pension Insurance Corporation (PIC), a leading UK investor in housing and infrastructure, and national placemaker Muse, in collaboration with Homes England, the government’s housing and regeneration agency.
The partnership, named Habiko, is set to deliver 3,000 low-carbon, energy-efficient affordable homes across England over a 12-year period, addressing critical housing needs while unlocking large-scale institutional investment. Designed to become self-sustaining, Habiko will focus on delivering high-quality, affordable rental homes at rents set 20% below local market rates, prioritising areas where housing demand is high.
Affordable Housing with a Focus on Energy Efficiency
Habiko’s housing developments aim to provide up to 100% affordable homes for rent, offering essential options for those whose housing needs are not met by the market. By incorporating low-energy, low-carbon design principles, these homes will help residents reduce their energy bills while contributing to the UK’s climate goals. Homes will be strategically located near employment hubs, ensuring accessibility to jobs and essential services, with a commitment to creating social value and economic benefits for local communities.
Investing in Communities and Sustainable Development
Through PIC’s long-term stewardship model, this partnership will bring both financial security and social benefits. PIC’s ongoing investment, with the flexibility to forward fund development throughout the 12-year programme, will allow it to ultimately own and manage these homes, providing secure, inflation-linked cashflows to back the pensions of its policyholders. PIC has already invested around £4 billion in social and affordable housing, reinforcing its role in creating resilient, community-oriented housing solutions.
Habiko’s construction approach will also diversify the housing supply chain, encouraging innovative building techniques and green skills development in local communities. This initiative is anticipated to boost local economies by creating jobs and training opportunities aligned with sustainable housing goals.
Showcasing Innovation at UKREiiF
Muse, PIC, and Homes England will promote the Habiko partnership at the upcoming UK Real Estate Investment and Infrastructure Forum (UKREiiF), the UK’s leading platform for investment in sustainable infrastructure. Their presence will allow them to engage with other stakeholders, discuss strategies to expand affordable housing, and showcase their joint commitment to addressing the housing crisis through innovative, community-centred, and environmentally resilient solutions.
Tracy Blackwell, CEO of PIC, emphasised the importance of collaboration, saying, “Meeting the UK’s affordable housing needs requires the combined efforts of government, developers, and private investors. Habiko demonstrates how public-private partnerships can create low-carbon, low-energy affordable homes, aligning with our commitment to secure cashflows for our policyholders and generate considerable social value.”
Phil Mayall, Managing Director at Muse, echoed this sentiment, “The government has set an ambitious target for affordable housing. By collaborating with PIC and Homes England, we can harness our collective expertise to deliver thousands of low-carbon homes that truly meet the needs of communities nationwide.”
Peter Denton, CEO of Homes England, added, “Institutional investment is vital to meet the demand for new homes. Habiko combines Muse’s technical expertise with PIC’s financial strength, positioning this partnership as a pivotal force in delivering low-carbon, affordable housing across England.”
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