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

If current trends persist, Scotland is set to face a homelessness crisis of alarming proportions by 2040, according to a new report by full-service law firm Shakespeare Martineau. The study has forecasted a 90% increase in homelessness applications to more than 4,100 annually, while at least 7,000 households could be forced into temporary accommodation – an 89% surge. The City of Edinburgh is anticipated to have the largest share of households in temporary accommodation in Scotland, comprising two thirds (66%) of the total nationwide. Highland follows, accounting for 32% of all such households in the country. Grant Docherty, partner and head of Shakespeare Martineau in Scotland, said: “This is a wake-up call. We cannot allow these projections to become a reality. “Scotland abolished the Right to Buy scheme, which gave council house tenants the opportunity to buy their rented home at a discounted price, in 2016 – leading to a 4% increase in the country’s social-rented homes stock in the six years that followed. “However, despite this, these figures show that it is crucial the public sector and housing associations work together to provide stable, accessible and affordable accommodation. The government also needs to ensure support services for vulnerable groups are properly funded. “The cost of doing nothing will be catastrophic – not just for the individuals affected but for society as a whole.” Utilising the latest National Records of Scotland population projections, Shakespeare Martineau – supported by socio economic experts at Marrons – has built a national and regional picture of Scotland’s housing need in 2040. Supplementing this is government data on homelessness applications and the number of households living in temporary accommodation, as well as under-occupation statistics. By 2040, Scotland’s 16+ population is expected to grow by 4% to more than 4.7 million people. Notably, Edinburgh and Lothians emerges as the fastest-growing region – anticipating 15% growth to more than 871,000 – while Highlands and Islands will witness a 3% decline in its total population. To meet the burgeoning demand, at least 352,500 homes need to be constructed across the country by 2040. Edinburgh and Lothians leads the way in housing need, with demand for more than 111,500 homes. In contrast, South of Scotland demands the least, with a requirement of 16,830 properties. The first-time buyer demographic is anticipated to grow by 1% to more than 1.3 million, with Edinburgh and Lothian expected to experience the most positive growth at 11%. Highlands and Islands stands out with the most significant decline, projected at 7%. Nationally, the later living demographic is set to witness a 27% increase, with Edinburgh and Lothians experiencing the greatest surge (39%) and Scotland South demonstrating the slowest growth (19%). Meanwhile, the student-age demographic is set to make up 7% of the total 16+ population in Scotland’s university cities. Dan Usher, economics director at Marrons, who specialises in housing need evidence, said: “Citing pressure on homelessness services, rising property prices and high levels of temporary accommodation, the Scottish government and 12 of the country’s 32 councils have declared housing emergencies – signalling that intervention is needed. “In examining the data, it becomes evident there is a pressing need for strategic collaboration between the public and private sectors to address the growing demand for affordable housing, as well as a real opportunity for purpose-built homes tailored for last-time buyers. By capitalising on this, we not only cater to the specific needs of this demographic but also unlock the potential to release much-needed family homes back into the market. “Building a range of homes to suit many different needs is not only a priority but a necessity. It creates more choice, aids first-time buyers onto the property ladder, gives expanding families additional space; helps the ageing population downsize and live in homes more suitable for their needs, and adds to the supply of affordable housing.” To read the full report, please visit https://tinyurl.com/ScotlandHousing2040. Building, Design & Construction Magazine | The Choice of Industry Professionals

Commenting on the latest Halifax data showing UK house prices in September rose 4.7% compared with a year ago – the strongest rate since November 2022, Daniel Austin, CEO and co-founder at ASK Partners, said: “We are continuing to see a consistent month-on-month rise in house prices, which signals a potential upward trend for the remainder of the year. The market is showing strong signs of resilience, even amid broader uncertainties. Much anticipation surrounds Labour’s plans to stimulate the housing sector, particularly regarding the construction of new homes and unlocking the planning system. If effective initiatives are announced in the coming months, they could provide the market with an additional boost, driving further growth and confidence in the sector. “In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate, we have seen values hit the bottom and confidence return. The market has picked up with opportunistic acquisitions of prime properties in prime locations. “As a debt provider, we hope to support well-capitalised borrowers who understand their product and are looking at the best sites in prime locations with potential to add to their asset value. Following this strategy, we aim to bolster developers’ initiatives with the flexible underwriting approach that is necessary for navigating a changing market. This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.” Building, Design & Construction Magazine | The Choice of Industry Professionals