Waypoint has unveiled its latest venture: the UK Affordable Single-Family Housing Fund. This initiative seeks to offer promising financial returns for investors while addressing the urgent need for affordable housing across the nation. With a generous £150 million seed portfolio to get the ball rolling, the fund is targeting eye-catching potential annual returns for investors of over 15%.

At the heart of this new fund is a collaboration between Waypoint and Wise Living, who have had success in the single-family Build To Rent (BTR) sector. Wise Living brings to the table a decade’s worth of experience and a track record of delivering over 7,500 new homes.

A Focus on Affordability and Sustainability

This initiative isn’t just about building homes; it’s about creating communities where key workers and average income earners can find quality, affordable housing options. The fund places a strong emphasis on environmental, social, and governance (ESG) criteria, ensuring that the new housing schemes will not only be accessible but also sustainable. This approach aims to meet the growing demand for quality housing exacerbated by the increasing exit of private landlords from the rental market.

Fund manager Paul Dennis-Jones highlighted the dual focus of the fund, “There is a pressing need for all forms of quality housing in the UK, and this fund has been created to help the thousands of hard-working individuals and families who are looking for a place to call home. Demand for this is high and has been further exacerbated by the current turmoil in the single-family rental sector as more and more private landlords exit, making the untapped opportunity even stronger. This provides a very healthy, secure and long-term sector for institutional investors to now get involved at a cyclical point where yields are at a historical high.”

Paul Staley, managing director at Wise Living, echoed these sentiments, “The fund presents a compelling investment opportunity, comprising significant scale, strong developer partnerships, and well-established predictable returns. This approach is built on a solid foundation which not only gives investors significant and predictable returns but also helps to address the critical need for high-quality and professionally managed affordable housing in the UK.”

The seed portfolio already comprises 531 homes across seven sites, with immediate plans to commence development. Beyond this initial investment, a broader pipeline of 1,979 homes across 25 sites has been identified, representing a gross development cost of approximately £570 million.