These homes will be built across England in areas of “high demand”, with rents set at 20% below market rates.

The Habiko project will have a 12-year lifespan with the aim of becoming self-funding during this time by unlocking institutional investment.

The Pension Insurance Corporation will have the ability to continue toward-funding the development of affordable homes, ultimately owning these assets.

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“Attracting institutional investment into the housing sector is critical to build the new homes the country needs,” said Peter Denton, CEO at Homes England.

Tracy Blackwell, CEO of PIC, added that the organisation has invested around £4bn in social housing to date.

She said: “Meeting the UK’s affordable housing needs is a challenge that is best met through effective collaboration between government, developers, and private investors.

“Habiko is a great example of public-private partnership, which brings forward thousands of low-carbon, low-energy affordable homes.”