Deal unlocks 150-home North Devon scheme

A deal has been agreed to deliver 150 affordable homes in North Devon as investors and developers respond to growing housing demand across the county.

Allison Homes South West has exchanged on the sale of its entire development at Landkey to specialist real estate investor Octopus Capital.

The scheme will be 100 per cent affordable, providing homes for social rent, affordable rent and shared ownership.

It marks Octopus Capital’s first whole-site acquisition through its Octopus Affordable Housing Fund and its first development directly backed by Homes England funding.

The fund has delivered more than 1000 affordable homes since launching in 2023, with Octopus-owned registered provider NewArch Homes set to own and manage the Landkey properties long term.

James Morgan, land and partnerships director at Allison Homes South West, said: “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.”

Jack Burnham, head of affordable housing at Octopus Capital, added: “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.”

The deal comes with more than 16,000 households currently on the housing register across Devon.

Homes are expected to achieve EPC B ratings, with electric vehicle charging provided at selected properties.

Around six hectares of green space will also form part of the development, including play areas, new planting and wildlife habitats complementing the neighbouring Millennium Green.

The agreement continues Allison Homes’ expansion across the South West, where it is progressing developments in locations including Congresbury, Bristol, Tiverton, Witheridge and Crewkerne.

Shahi Islam, director of affordable housing grants at Homes England, added: “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.”

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