Allison Homes and Octopus Capital exchange on North Devon new homes site  

The development will provide 150 new affordable homes for social rent, affordable rent and shared ownership.  

Allison Homes South West has exchanged with leading UK specialist real estate investor, Octopus Capital, which has purchased a 150-home development from the housebuilder in Landkey, North Devon.   

This  represents  Octopus Capital’s  first whole-site purchase through the Octopus Affordable Housing Strategy and its first scheme directly  backed by funding from Homes England. This deal is also the first between Allison Homes  South West and Octopus Capital,  driven by a mutual commitment to expanding the delivery of high-quality affordable housing through the development of new homes.  

There are currently over 16,000 households on the housing register across  Devon, highlighting the urgent need for new affordable homes in the county. The new homes development at Landkey will be 100% affordable, with a mix of properties available for social rent, affordable rent and shared ownership, helping local people to stay close to family, work and amenities.   

This investment has been made through the Octopus Affordable Housing Strategy, which deploys long-term capital to accelerate the delivery of affordable homes across the UK.  The Team 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 have been designed with energy efficiency in mind, expected to achieve EPC ‘B’ ratings, with electric vehicle charging points available on selected properties. The wider development will also include circa 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.   

“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.”   

James Morgan, Land & Partnerships Director at Allison Homes South West 

“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”

Jack Burnham, Head of Affordable Housing at Octopus Capital

 ”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.”

 Shahi Islam, Director of Affordable Housing Grants at Homes England

Allison Homes continues to build momentum across the South West, having recently been granted planning permission for 70 new homes in Congresbury, making strong progress on its Centric Parc planning application in Bristol, and currently selling the final few homes at its High Moor View development in Winkleigh. The housebuilder is also currently delivering 100% affordable homes at its sites in Tiverton with LiveWest, in Witheridge with L&G and in Crewkerne with Abri.