First sites revealed for £54m Habiko affordable homes partnership

Habiko has also identified a site in Warrington, adjacent to the Times Square district, to build 240 flats between Academy Street and Mersey Street. The partnership is developing design with AHR Architects.

Both schemes will have a minimum of 75% affordable homes for rent, with an overall target of up to 100% affordable housing.

Affordable housing tenures will be set with the local authorities and according to local housing demand, at a minimum of 20% below local market rate at both sites.

Habiko aims to build 3,000 low-carbon, low-energy and affordable homes for rent across England over the next 12 years, with a gross development value of £1bn. 

The homes delivered by the joint venture will be forward-funded by PIC. PIC will then own and manage the homes through a for-profit registered provider. Homes England will receive an equity return on its investment and provide grant funding for the homes through the Affordable Homes Programme.

Jennifer Murray, director of product, equity and partnerships at Homes England, said: “The Habiko partnership brings together the market insight, capability and expertise of its partners.

“The UK needs more affordable homes built to higher sustainability standards.

“Progressing these sites in Chester and Warrington demonstrates that this can be achieved, with the right driving forces behind it.”

Earlier this year, James Agar, head of real estate origination at PIC, told Inside Housing that the organisation wanted to acquire an affordable housing portfolio, but “we didn’t believe that the quality of the product [we wanted] existed. So you’ve got to build it”.

Passivhaus, a leading energy-efficient construction standard, is an “aspiration” for the new homes, he said. He added: “We absolutely want to see a proportion of social rent in these schemes.”

He also explained that, separate to Habiko, PIC will also look at stock transfer opportunities. This would entail buying tenanted homes from cash-strapped housing associations, which would allow registered providers to recapitalise and put them in place to manage the properties.