Habiko: A blueprint for using public private partnerships to unlock sustainable, affordable homes
03.07.25 3 min read
Lisa Gledhill, Managing Director – National Partnerships at Muse, recently spoke to Inside Housing about how Habiko is pioneering a collaborative and sustainable approach to affordable housing delivery in the UK, aligning public and private sector strengths to meet ambitious national targets.
As the UK galvanises to build homes at pace, it is important that a balance is maintained between the quantity and quality of homes that are delivered. Traditional approaches may seem the best way to hit the government’s 1.5 million homes target, but their plans present a unique opportunity to bring forward innovative delivery models.
Now we have government backing, the public and private sectors need to come together in new and dynamic ways. Local authorities need support to unlock development sites; and private partners need to have confidence in the investment potential that enables private funding to bridge the gaps.
Habiko points the way, leveraging the convening power of Homes England and Muse’s track record to bring in Pension Insurance Corporation (PIC). Habiko has a very clear mandate from its partners: to lead the market in affordable and sustainable housing delivery by supporting innovative approaches.
The unique skills and experience of the partners within Habiko, with Muse acting as development manager, will create a best-in-class delivery platform that will enable us to work closely with local – and increasingly combined – authorities to deliver positive outcomes and social value for our communities.
Homes England, with its deep understanding of housing needs and policy, aligns efforts with national housing goals, building confidence for private investment. PIC brings financial strength and a commitment to long-term investment. With its appetite to forward fund and operate new homes, the JV will deliver social impact through placemaking and stewardship.
Habiko targets up to 100% affordable homes for rent, with 75% as a minimum, aiming to address the needs of those whose housing requirements are not currently met by the market.
Affordable tenures will be set with local authorities and according to local housing demand, with rents at least 20% below market rate, helping people access quality, energy efficient homes with low carbon emissions.
Delivering meaningful change can only be achieved by working together with others who have the skills, capabilities and desire to make things happen and see them through over the long-term. Our approach will diversify the housing supply chain, create jobs, and invest in skills. It is not just a solution to the housing crisis; it is a blueprint for a better, more sustainable future.