Octopus Capital secures €117m for UK affordable housing

Asset manager Octopus Capital has secured an additional £100 mln (€117 mln) for its Affordable Housing Strategy. 

Lunesdale Rise - Octopus Capital

Of this figure, £50 mln (€58.5 mln) is contributed by the Scottish National Investment Bank. 
This funding will support the development of over 1,000 "Zero Bills" homes across England and Scotland, where residents will pay no energy costs for an extended period due to integrated green technology like solar panels, heat pumps, and batteries.
Notably, the investment will also introduce an intermediate rent model in Scotland, offering both rent and energy costs at a 20% discount to market rates, with priority given to key workers. 
The Scottish National Investment Bank's contribution specifically targets Scottish developments, aligning with its mission to foster community transformation and well-being. The remaining capital comes from a US public foundation, broadening Octopus's global investor base.
Launched in 2022, Octopus Energy's "Zero Bills" is an innovative tariff that allows residents of specially equipped homes to pay no energy bills for 5-10 years, thanks to integrated green technologies like heat pumps, batteries, and solar panels.
Jack Burnham, head of Affordable Housing, Octopus Capital, said: “Our aim for this year was to double the size of our Affordable Housing Strategy, and we’re so pleased to welcome our new investors, enabling us to close in on our next £500m milestone. This new capital also presents a few exciting firsts; the investors are from new types of institutions to those in the strategy already, building our growing group of those looking for resilient income and long-term social impact. This also marks our first time investing specifically into Scotland and its discounted market rent housing.”
Nigel Banks, Zero Bills director, Octopus Energy, commented: “For too long, people have had to choose between affordability and sustainability. Zero Bills homes remove that trade-off – they’re cheaper to live in, better for the planet, and powered by the latest clean tech. This investment in the Octopus Affordable Housing Strategy means thousands more people will be able to move into homes where they won’t have to worry about home energy bills. It’s a game-changer for renters and homeowners alike.”
Nicola Douglas, executive director – Sustainable Investments, Scottish National Investment Bank, added: “Scotland is experiencing a housing emergency and the Affordable Housing Strategy is a brilliant example of the innovative approaches – to both securing capital and ensuring homes are affordable – that we need to deploy at scale. Octopus Capital’s approach to sustainable building and discounting both rent and energy takes a holistic approach to addressing cost-of-living pressures. We were also attracted to the Strategy’s approach to regenerating sites, utilising local supply chains, and supporting social inclusion.”