How a new public-private partnership aims to unlock sustainable, affordable homes

Now that we have government backing, the public and private sectors need to come together in new and dynamic ways if we are to not only meet housing targets, but deliver for communities. Local authorities need the support to unlock development sites at speed and at scale; and private partners need to have confidence in the investment potential that enables private funding to bridge the gaps.

Our latest national partnership, Habiko, points the way. It leverages the convening power of Homes England, the government’s housing and regeneration agency, alongside Muse’s track record of delivery to bring in a major investor in UK housing and infrastructure in the form of the Pension Insurance Corporation (PIC).

“Habiko has a very clear mandate from its partners: to lead the market in affordable and sustainable housing delivery by supporting innovative approaches”

Habiko has a very clear mandate from its partners: to lead the market in affordable and sustainable housing delivery by supporting innovative approaches. The unique skills and experience of the partners within Habiko, with Muse acting as development manager, will create a best-in-class delivery platform that will enable us to work closely with local – and increasingly, combined – authorities to deliver positive outcomes and social value for our communities.

The partnership will explore what greener, healthier and friendlier neighbourhoods could look like, and pragmatic ways to get them built. Our mission is to deliver 3,000 affordable, sustainable homes for rent over the next 12 years.

Homes England, with its deep understanding of housing needs and policy, provides essential support and guidance to align our efforts with national housing goals, ultimately building confidence for private investment into this market.

The PIC is committed to delivering low-carbon, low-energy homes through construction, as well as in operation, bringing substantial financial strength and a commitment to long-term investment in social infrastructure. With the PIC’s appetite to forward fund development and its aspiration to operate the new homes, the joint venture will also deliver tangible social impact through long-term placemaking and stewardship.

To ensure these homes meet the needs of residents, stewardship from the outset is key. This means engaging properly with communities, designing and developing sustainable homes, and managing greener, healthier and friendlier places for the future. By targeting up to 100% affordable homes for rent across England, with 75% as a minimum, Habiko aims to address the needs of those whose housing requirements are not currently met by the market.

“Stewardship from the outset is key. This means engaging properly with communities, designing and developing sustainable homes, and managing greener, healthier and friendlier places for the future”

Affordable housing tenures will be set in conjunction with local authorities and according to local housing demand, with discounted market rents set at a minimum of 20% below the local market rate, helping people access quality, energy-efficient homes with low carbon emissions.

Delivering meaningful change at scale is something that simply can’t be done alone. It can only be achieved by working together with others who have the skills, capabilities and desire to make things happen and see them through over the long term.

We are currently identifying and selecting the first opportunities for Habiko. These will concentrate on brownfield sites in areas of high demand, with a focus on key workers as priority tenants.

Importantly, our approach will diversify the UK’s housing supply chain, particularly for energy-efficient and sustainable homes, as well as create new jobs and investment in skills.

Habiko is not just a solution to alleviate the housing crisis; it is a blueprint for a better, more sustainable future.

Lisa Gledhill, managing director of national partnerships, Muse