The National Housing Bank has secured its first major institutional investment with a £100m commitment from Aviva to fund the delivery of 300 affordable rental homes across the north of England.
The partnership between Homes England and Aviva marks the first significant private sector backing since the government launched its £16bn housing finance vehicle last month. The scheme will target brownfield sites in Liverpool and Manchester, with scope to expand to 3,300 homes as funding grows.
Affordable family homes prioritised
The homes will be built to high energy efficiency standards and marketed to lower- and middle-income working families. Place Capital Group will act as delivery partner on the initial 300-home pipeline.
Simon Century, chief executive of the National Housing Bank, said: “This partnership with Aviva is exactly the kind of investment that the National Housing Bank was created for. Bringing together government-backed finance and institutional capital from a Sterling 20 investor, it supports the creation of a new housing delivery platform.”
He added: “It will unlock brownfield land and deliver high-quality, affordable family homes for rent across the UK, starting in Liverpool and Manchester.”
This follows Residential Landlord’s March coverage of the National Housing Bank launch, which outlined the government’s aim to deploy up to £16bn and unlock more than £53bn of private investment over the next decade.
Institutional appetite for build to rent
The deal suggests growing institutional appetite for the private rental sector despite headwinds facing smaller landlords. The homes will offer stable tenancies – a model that contrasts with concerns over supply from individual investors facing rising mortgage costs and regulatory uncertainty.
David Epstein, managing director at Aviva Capital Partners, said: “This investment will provide working families with high-quality, aspirational rental homes with stable tenancies, supporting urban neighbourhoods across the country to get ready for the future.”
He added: “The partnership is another way Aviva is investing in the UK, working together with Homes England to improve local economies and communities in cities across the country.”
The National Housing Bank is a subsidiary of Homes England and aims to support the delivery of 500,000 homes through a mix of debt, equity and guarantees. It will work with housebuilders, developers, investors and registered providers, offering flexible government-backed finance, according to the Homes England investment prospectus.
Opinion
While institutional capital flows into purpose-built rental housing, smaller landlords continue to exit the market. The contrast is stark – and raises questions about whether government policy is creating a two-tier rental sector where large investors thrive while individual landlords retreat.
