Octopus Capital buys 128 affordable homes from house builder

The developments will range from one-bedroom flats to four-bedroom family houses.

Of the 128 homes, 89 homes will be for rent and 39 will be for shared ownership.

The homes will be energy efficient, with an Energy Performance Certificate B rating or above and most will be fitted with air-source heat pumps to lower energy costs for residents.

The investment was made through Octopus Capital’s Affordable Housing Fund, which channels long-term capital to accelerate the delivery of affordable homes across the UK.

The transaction represents one of the largest individual new build affordable housing deals completed by the fund to date.

It also marks the first direct transaction between Octopus Capital and Bellway.

As of 31 December 2025, Octopus Investments has had £9.2bn funds under management.

Ellie Vlavianou, investment director – affordable housing at Octopus Capital, said: “This deal marks an important milestone for our affordable housing strategy.

“Partnering directly with Bellway for the first time allows us to deploy capital at scale, regionally to support the delivery of high-quality affordable homes where they’re needed most.”

In January, Jack Burnham, head of affordable housing at Octopus Capital, told Inside Housing Living that the asset manager was confident of scaling up and building more homes with zero energy bills.

In November 2025, Octopus Capital announced that its Affordable Housing Fund was going to expand into Scotland, after it secured a £50m investment from the Scottish National Investment Bank.

Earlier that year, Octopus Capital had raised an additional £118m for the fund, taking its total funds under management to £360m, including co-investment capital.