Allison Homes South West has exchanged on a deal with specialist real estate investor Octopus Capital for a 150-home development in Landkey, North Devon.
This represents three firsts: a first deal between the two companies; Octopus Capital’s first whole-site purchase through its Octopus Affordable Housing Fund (OAHF); and this being its first scheme directly backed by funding from Homes England.
Devon Home Choice has reported that there are currently over 16,000 households on the housing register across the county. The development at Landkey will be 100% affordable, with a mix of properties available for social rent, affordable rent and shared ownership.
This investment has been made through the Octopus Affordable Housing Fund, which deploys long-term capital to accelerate the delivery of affordable homes across the UK. The Fund has delivered more than 1,000 affordable homes since its launch in 2023, placing Octopus Capital among a small number of UK investors to reach this milestone and underlining the scale and pace of its commitment to addressing the UK’s housing gap.
This is the first time Octopus Capital has purchased a site in its entirety. NewArch Homes, the Octopus-owned registered provider of social housing, will be the long-term owner and manager of the homes.
The homes being delivered by Allison Homes at Landkey are expected to achieve EPC B ratings, with electric vehicle charging points available on selected properties. The wider development will also include around six hectares of green space, enhancing the nearby Millennium Green with play areas, new planting and wildlife habitats.
The site is within walking distance of local amenities including a shop, pub, post office, community centre and primary school, while nearby transport links connect residents to Barnstaple, Exeter and beyond.
James Morgan, land & partnerships director at Allison Homes South West, commented: “At Allison Homes, it’s hugely important to us that homes are delivered in the places that people need them and to high quality and sustainability standards, whether that be for private purchase or affordable housing.
“Once this deal with Octopus Capital is complete, 150 new affordable homes will be provided to the community – a small step forward towards alleviating the housing crisis affecting Devon and beyond. It’s been a pleasure to collaborate with Octopus; we look forward to continuing our relationship together and to seeing the positive effect that the completed development will have.”
Jack Burnham, head of affordable housing at Octopus Capital, said: “This deal marks an important milestone for the Octopus Affordable Housing Fund – our first whole-site acquisition, and our first transaction backed by Homes England funding. It reflects the scale and pace we’re now able to bring to tackling the UK’s affordable housing shortage, and we’re pleased to be working with Allison Homes South West to deliver them to the local community.”
Shahi Islam, director of affordable housing grants at Homes England, said: “As the government’s housing and regeneration agency, increasing the supply of quality affordable homes remains one of our key objectives, and we are committed to supporting stakeholders of all sizes to achieve their ambitions.
“This scheme in Landkey is a prime example of how we work collaboratively with partners to achieve our mission of building much needed new communities that people can be proud to call home. With a significant proportion of homes for social rent and larger family houses making up around a third of the site, this development reflects our priority to meet both local and strategic housing need.”
