Labour to launch discounted rental homes in high demand areas

Thousands of affordable rental homes in areas of high demand will be created by a new £54 million public-private partnership.

The organisatoin, named ‘Habiko’, is to build 3,000 low-carbon, low-energy properites, unlocking institutional investment to do so.

The Pension Insurance Corporation (PIC), a major investor in UK housing and infrastructure, developer Muse, and Homes England, the Government’s housing and regeneration agency, are all involved.

20% below

Habiko, which will become self-funding over its 12-year lifespan, is targeting properties at those whose needs are not currently met by the market, with rents set at 20% below the local market rent.

PIC will have the ability to continue to fund development of the affordable homes, and will ultimately own the homes.

The developments created will aim to add ‘social value’ to local communities, including boosting the local economy through jobs and new skills to drive green innovation.

Properties will be in accessible locations, close to employment opportunities, and be designed to help residents save money on their energy bills.

Thousands of homes

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

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

Phil Mayall, MD at Muse, says: “The Government has set out a bold and ambitious challenge to deliver a significant number of new affordable properties over the next five years.

“Working together with PIC and Homes England, we can bring together our collective resources and unique experience to deliver thousands of low carbon and low energy homes which, by working alongside our local partners, meet the needs of communities across the country.”