The problem with housing? Viability, viability, viability.

At UKREiiF, Habiko partnered with public sector magazine The MJ to bring together senior local authority representatives to discuss one of the biggest challenges facing housing delivery today: how to unlock much-needed homes in an increasingly difficult viability landscape.

The discussion highlighted a strong consensus across the room. While demand for housing remains high and the ambition to deliver new homes is undiminished, viability pressures continue to constrain delivery. Rising construction costs, funding challenges, infrastructure requirements and wider economic uncertainty are making it increasingly difficult to bring forward projects at scale.

However, there was also a clear sense of optimism.

Participants shared examples of how local authorities are overcoming barriers through long-term partnerships, strategic land assembly, infrastructure-first investment and more collaborative approaches to delivery. There was a recognition that the solutions are increasingly understood. The challenge now is creating the scale, certainty and coordination needed to put them into practice more consistently across the country.

A recurring theme throughout the discussion was the importance of partnership. As development becomes more complex, local authorities are increasingly looking beyond transactional relationships in favour of long-term strategic collaborations that can unlock sites, share risk and create sustainable pipelines of housing delivery.

This is why Habiko was created.

As a long-term public-private partnership between Pension Insurance Corporation (PIC), Muse and Homes England, Habiko was created to help address the structural challenges that continue to hold back affordable housing delivery.

Looking at the wider picture, Lisa Gledhill, Managing Director – National Partnerships at Muse, said:

“Across the country, councils have strong ambitions to deliver much needed homes but face significant barriers. The roundtable reinforced the value of organisations such as Homes England acting as convenors, helping to bring partners together around a shared objective.

Reflecting on the discussion, James Agar, Head of Real Estate Origination at PIC, said:

Habiko brings together institutional capital, development and placemaking expertise, and public sector alignment to unlock housing delivery at scale.

Through strategic, place-based partnerships with local authorities, the partnership is designed to address key barriers including risk allocation, land assembly and funding certainty.

With an ambition to deliver 3,000 low-carbon, low-energy affordable homes for rent, Habiko focuses on locations where housing need is greatest, particularly areas with strong links to employment opportunities and public transport.

Its infrastructure-first approach enables investment in site preparation, enabling works and community infrastructure upfront, helping to de-risk development, improve community outcomes and attract further long-term investment. By aligning local authorities, central government and private capital around shared objectives, Habiko aims to provide the certainty and coordination needed to accelerate housing delivery.

As James concluded:

The discussion reinforced an important message: demand for housing is not the only challenge. Delivering it requires stronger partnerships, long-term thinking and a more coordinated approach to investment and delivery.

Read The MJ’s full write-up here.

Participants:

Fiona Piercy, Director of capital projects and sustainability, Liverpool City Council
Vicky McDermott, Director of housing and communities, Newcastle City Council
Tom Southhall, Assistant director of economy, transport and planning, Portsmouth City Council
Robin Tuddenham, chief executive, Calderdale MBC
Michelle Burdett, Strategic director, East Suffolk Council
Garry Taylor, Director of city development, York City Council
Zoe Dunn, Head of housing delivery, York City Council
Paul Richards, Deputy chief executive, Stockport Council
Tracey Lee, Chief executive. Plymouth City Council
Lee Arnell, Head of place and regeneration programmes, Leeds City Council
Lisa Gledhill, Managing director – national partnerships, Muse/Habiko
James Agar, Head of real estate origination, Pension Insurance Corporation/Habiko
Paul Marinko, deputy editor, The MJ
Heather Jameson, editor, The MJ