The lender is supporting the housebuilder through its Greener Homes Alliance, in its second collaboration with Home England.

The alliance offers incentives to reduce financing costs to help SME developers build sustainable homes.

This new development is being designed with the aim of being a ‘zero bills’ community with residents not paying home energy bills for a minimum of five to ten years.

Each home on the site includes a heat pump, solar panels and is linked to a centralised battery system.

The site, called Carpenters Yard, will include landscaped gardens, play trails and allotments, along with a community hub, cafe, grocery shop and fitness centre.

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The Octopus Affordable Housing Fund will acquire 35 of the homes through its own for-profit registered provider of social housing, NewArch Homes.

“This acquisition demonstrates the powerful role long-term capital can play in transforming housing,” said Jack Burnham, head of affordable housing at Octopus Capital.

“By combining institutional investment, government-backed finance, and cutting-edge homebuilding innovation, we’re proving that affordability and sustainability can go hand in hand.”

Josh Gordon, co-founder of gs8, added: “At gs8, we’re driven by a clear purpose that housing should have a positive impact — on people, place and planet.

“This partnership with Octopus Capital and Octopus Energy brings that vision to life.”