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 EfficiencyHabiko’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 DevelopmentThrough 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 UKREiiFMuse, 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.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Leading independent housebuilder City & Country has pledged its support for a new national campaign by Pocket Living urging the Government to help unlock the potential of small and medium-sized developers to end the housing crisis. Pocket Living’s “Get SMEs Building Again” reports the difficulties that SME housebuilders face and puts forward a 10-point plan to boost housing delivery by levelling the playing field. The report notes that the number of SME housebuilders has plummeted from 12,000 in the 1980s to just 2,500 today, with the sector now building just 10% of the UK’s new homes, compared with nearly half of homes in the 1970s. Pocket Living, supported by City & Country and a number of other developers, has put forward a manifesto of recommendations that it believes will revitalise the struggling small and medium-sized housebuilder sector and massively speed up the number of homes being built on smaller sites across the country. Wayne Douglas, Managing Director at City & Country, comments: “The report by Pocket Living clearly highlights the difficulties that SMEs face, and puts forward a sound and well-researched plan that could unlock the full potential of smaller businesses to create the homes the country so badly needs. At City & Country, we are keen to support it and would encourage the Government to take urgent action to put smaller developers back at the heart of housebuilding. “SMEs have a vital role to play in the housing market, but there are too many barriers in their way – the pace of planning is one such hurdle, but another significant barrier is the cost of finance when the planning and discharge process can be so lengthy and uncertain. For SMEs, the risk we take on can mean we can on otherwise viable schemes, struggle to break even on a building project company whereas with more speed and certainty of timing, more schemes could be viably delivered. The Government should look at offering zero or low-cost finance through Homes England to reduce the inherent risk to development from these causes coupled with their plans for the panning system to make more schemes viable. This would increase the speed at which development is unlocked across the country and result in more variety of the types of housing schemes which are delivered.” Paul Rickard, Managing Director at Pocket Living, adds: “Small and medium-sized housebuilders have a wealth of skill and talent that needs to be supported. In London alone, the number of SMEs has plummeted by 66% since Pocket was founded two decades ago, making it harder and harder to get new homes built on smaller sites – especially since delays in planning consent are more damaging to smaller businesses. We are delighted that City & Country has joined our campaign, and we look forward to discussing these proposals in detail with the Government. All of the steps included in Get SMEs Building Again are designed to be cost-neutral for the Treasury and should be low-hanging fruit for the Chancellor.” City & Country specialises in both high-quality new build developments and the restoration and conversion of historic and listed buildings, with sites across Essex, West Sussex, Wiltshire, London, Edinburgh, Bristol, and Dorset. Building, Design & Construction Magazine | The Choice of Industry Professionals