Deliver badly needed housing that also helps tackle the climate crisis
Across England, 1.15 million households are waiting for social housing, according to 2020 data from housing charity Shelter. Successive governments have promised and failed to stimulate the construction of enough new houses, let alone affordable and social homes.
We also know that both existing and new housing stock is a big contributor to climate change, accounting for 20% of carbon emissions.
“The technology and knowledge to create high quality, low-carbon and resilient homes exists, but current policies and standards are failing to drive either the scale or the pace of change needed.”CCC, 2019
There is a better way, of both building and financing new social homes, and pioneering housing developer Octevo is doing it. Rather than focus on the short term gains typical of other housing developers, Octevo’s social rental model provides secure long term cash flows linked to long lease agreements with Housing Associations. That allows the upfront costs of investment in low-carbon measures (like rooftop solar and ground-source heat pumps) to be spread over a longer period of time.
This approach, combined with the funding provided by Abundance investors, creates a unique, sustainable model for building the greener, affordable homes the UK needs for the future.
We’ve backed three investments from Octevo so far; and thanks to Abundance investors, at least 73 families and individuals in the Liverpool area will be able to settle into cosy and comfy new energy-efficient homes.
“From the outset our ambition has been not only to help fix the dire shortage of quality housing for those in need, but to prove it can be done in a green and sustainable way. The home should be the treasure chest of living — it doesn’t need to come at a cost to the environment.”Robert Macmaster, Director of Octevo Housing Solutions Limited