UK receives additional £150 million for funding in affordable housing projects
Several new investors have joined forces with Octopus Investments, a key player in the UK's affordable housing and renewable energy sectors. The latest additions include the Strathclyde Pension Fund, London CIV, Avon LGPS, Gloucestershire, Devon, and Clwyd, collectively injecting fresh capital of £118 million into Octopus Investments' Affordable Housing Fund.
The funds will support Octopus Capital's active pipeline and expand its impact-driven strategy focused on affordable housing. The fund, which now manages over £360 million, aims to reach £1 billion in investments by 2026, aligning with government commitments to significantly increase affordable housing delivery in the UK.
Jack Burnham, Head of Affordable Housing at Octopus Capital, and Christopher Osborne, Head of Real Estate at London CIV, are key figures driving this initiative. The fund is managed together with Octopus Capital's registered provider of social housing, NewArch Homes, which owns around 500 affordable homes as part of this effort.
Avon, Gloucestershire, and Devon have also opted for a co-investment arrangement to deliver a share of affordable homes in their specific regions, committing £50m, £50m, and £40m respectively.
Meanwhile, the Resonance housing initiative, a social impact investment fund, has closed and welcomed its tenants. This geographically agnostic fund, which invests across the UK, aims to invest in areas with stretched housing affordability. It has already raised £50m in its first close, with earlier investors including London CIV and social impact investor Big Society Capital.
In another development, a renewable energy firm, Renalfa, has raised €315M from an EBRD-led investor group. The capital raised last year has been fully allocated to affordable housing projects, in partnership with Octopus Investments' registered social housing provider NewArch Homes.
Elsewhere, CorPower Ocean, a renewable energy company, has received a €40m EU grant for a wave energy farm. This grant is part of the development of blue economy and energy transition projects.
The ties between Octopus Investments and Octopus Energy, one of the UK's largest energy suppliers, are expected to allow more energy-efficient homes to be built. However, this is not related to the Resonance housing initiative or the facts about it.
The investment in the Resonance housing initiative aims to meet future pension promises, while the ties between Octopus Investments and Octopus Energy are expected to contribute to the building of more energy-efficient homes.
In a significant shift, affordable housing now accounts for around 16% of total housing stock in England compared to 20% in 2000, according to government data.
The new investments and initiatives are a testament to the growing commitment towards affordable housing and renewable energy in the UK.
[1] Octopus Investments Press Release, 2022 [2] Strathclyde Pension Fund Press Release, 2022 [3] London CIV Press Release, 2022
- The Strathclyde Pension Fund, London CIV, Avon LGPS, Gloucestershire, Devon, and Clwyd, as recent investors, have injected £118 million into Octopus Investments' Affordable Housing Fund, aligning with government commitments to increase affordable housing delivery in the UK.
- Jack Burnham, Head of Affordable Housing at Octopus Capital, and Christopher Osborne, Head of Real Estate at London CIV, are key figures driving the initiative to expand Octopus Investments' impact-driven strategy.
- Avon, Gloucestershire, and Devon have committed to co-investment arrangements to deliver a share of affordable homes in their specific regions.
- The Resonance housing initiative, a social impact investment fund, aims to meet future pension promises by investing in areas with stretched housing affordability across the UK.
