Breaking Property News 2/12/25
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Homes England grant funding supports the development of 82 new homes
Octopus Capital & Vistry to deliver affordable homes in North Devon
Octopus Capital, a leading UK specialist real estate lender and investor, has agreed a forward funding deal to support the delivery of 82 new affordable homes across Northam and Bideford in North Devon. The investment for the homes has been made through the Octopus Affordable Housing Fund (OAHF), which invests long-term capital to accelerate the delivery and ownership of essential new affordable homes across the UK.
The scheme has also received grant funding from Homes England, the government’s housing agency. This means that all the homes will be delivered as affordable housing, converting what would have been private sale homes into a mix of social rent, affordable rent and shared ownership. This mix of tenures aims to provide choice for all parts of the community. The homes are being delivered in partnership with Vistry, one of the UK’s largest housebuilders.
This deal marks the continuation of their relationship with Octopus Capital and forms part of a wider pipeline they’re progressing together, as they look to develop a longer-term investment framework to fund the delivery of more affordable homes nationally. The scheme comprises of 238 beds across the 82 high-quality, energy-efficient homes, with all homes meeting EPC B and being fossil fuel free, with the energy provided through air source heat pumps. The homes range from two to four bedrooms, which allows the scheme to cater to couples as well as growing families.
Octopus Capital will be working closely in partnership with Torridge District Council to advertise the rented homes through Devon Home Choice, the platform that allocates social housing in the area. This means that priority will be given to applicants with a connection to the area, helping to ensure that these homes directly support the needs of the North Devon community.
The homes are being delivered on a freehold basis with construction already underway. The first homes are due to complete in Spring 2026 with the final homes expected by Summer 2027. NewArch, the Octopus-owned registered provider of social housing, will be the long-term landlord for the homes, with housing management provided by Pinnacle once construction is complete.
Ellie Vlavianou, Investment Director at Octopus Capital, said: “These are two fantastic sites that will create real opportunities for people and families to put down roots in their local community. We’re very proud to be working with trusted partners to deliver high-quality, sustainable homes where they’re needed most. We’re also excited about the potential to grow our partnership with Vistry as we both look forward to delivering more schemes like this across the country.”
Claire Hodson, Deputy Leader and Lead Member for Homelessness and Housing Need, Torridge District Council, said: “Thanks to influx of government and private funding, Registered Providers (housing associations) are picking up additional units across the district. New Arch will provide homes alongside other social housing providers already working on these strategic sites. This is particularly welcome news as in recent years we have struggled to achieve our local plan target of 30% affordable housing on many sites due to developer viability issues. With around 1,400 households on the housing needs register, and 50 or more local Devon Home Choice bids for each new affordable home in our area, we know the need for affordable, good quality homes is critical. The addition of 82 more affordable, social homes on Bideford strategic sites is welcomed.”
Oliver Grieve, Partnerships Housing Manager at Vistry, added: “Vistry is pleased to be partnering with Octopus Capital and NewArch Homes to deliver 82 much-needed, affordable homes across two sites in North Devon. These homes will combine thermal efficiency along with high design standards, helping to reduce energy costs for residents while contributing to the wider housing needs of the local community. We look forward to building on this partnership to deliver even more affordable housing with Octopus and NewArch Homes.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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