Octopus Capital’s affordable housing fund tops £360m

Jack Burnham, head of affordable housing at Octopus Capital, previously told Inside Housing that the fund had raised £242.5m since launching in November 2023 and that it was aiming to double that to £485m this year.

NewArch Homes, Octopus Capital’s for-profit registered provider, now owns 500 affordable homes. It recently acquired 220 homes through a partnership with Essex-based housing association CHP.

Mr Burnham said in January that NewArch aims to grow its affordable housing pipeline to 1,000 homes by the end of this year, while maintaining a mix of tenures.

Octopus’ affordable housing team has recently expanded, with Ellie Vlavianou joining as investment director and Sarah Thomas appointed as non-executive director at NewArch Homes.

Mr Burnham said: “The announcement of a £39bn commitment to the sector over the next decade in [the government’s] recent Spending Review is a hugely positive move.

“It supports the scale-up of affordable housing delivery across the UK and aligns closely with the priorities of the long-term institutional investors we work with.

“This commitment gives us the tools and certainty to go further and faster, in partnership with local authorities, housing associations and developers.”

Christopher Osborne, head of real estate at London CIV, said: “Octopus is on course to deliver the target net returns for our underlying London LGPS partner funds and remains focused on increasing the supply of good-quality and energy efficient affordable homes across the UK.

“Under the stewardship of Jack Burnham, the team has been bolstered through the recruitment of experienced housing practitioners and investment professionals. We look forward to the fund continuing to drive both returns and the supply of genuinely affordable and quality homes for some of the most vulnerable members of society.”