LONDON, March 31, 2026, 14:34 BST
- Aviva is teaming up with the National Housing Bank, kicking off a £100 million investment aimed at developing family rental homes—Liverpool and Manchester get the first wave.
- The platform aims to reach up to 3,300 homes, positioning it among the earliest projects supported by the new government-backed housing bank.
- Homes England is launching the bank backed by as much as £16 billion in debt, equity, and guarantees, aiming to draw private capital into the housing sector.
Aviva on Tuesday announced a £100 million investment with the National Housing Bank, part of Homes England, targeting family rental housing in urban areas that have seen limited investment. The deal is among the first to tap the new government housing finance vehicle. Initial projects kick off in Liverpool and Manchester.
Timing is key here. Homes England confirmed the bank will launch Wednesday with up to £16 billion available through debt, equity, and guarantees, targeting the delivery of more than 500,000 homes and aiming to unlock over £53 billion in private capital over the next ten years. For Aviva, the agreement tightens its focus on long-term residential assets, just as ministers ramp up efforts to attract institutional funds to the housing sector.
Aviva’s partnership with Place Capital Group kicks off with roughly 300 homes on brownfield sites, eyeing a potential pipeline of up to 3,300 homes across the country as more capital comes in. The insurer pointed to 135 homes scheduled for Vescock Street in Liverpool and about 150 at Moston Lane, Manchester—36% of those earmarked as affordable units.
David Epstein, managing director at Aviva Capital Partners, said in a statement the investment aims to give working families access to high-quality rental homes, with aspirations and longer-term leases. Simon Century, chief executive of the National Housing Bank, added that the platform is set to combine institutional funding with government-backed finance, targeting large-scale housing delivery.
Asset management will be handled by Aviva Investors. “We want housing and other residential assets to exceed 25% of our real estate portfolio inside three years,” said James Stevens, who heads global real estate equity at the group. Aviva noted its single-family rental platform now includes funding for over 1,500 homes, part of a portfolio valued above £1 billion. Aviva
The field keeps crowding. Earlier, Reuters flagged that rivals such as Legal & General and M&G have been ramping up their stakes in the UK rental property sector, chasing steady income in a market where supply remains tight.
Aviva’s still got firepower for more. The insurer posted a 25% jump in 2025 operating profit, reaching £2.2 billion on March 5, revived a £350 million share buyback, and stuck with its targets after wrapping up the £3.7 billion Direct Line deal.
The housing wager comes with plenty of risk. Costs to build, financing rates, and tenant appetite can all shift quickly. On Tuesday, Reuters noted that UK house prices climbed more than forecast in March. Just a day before, the Bank of England pointed to stronger-than-expected mortgage approvals for February. Even so, economists caution: fresh borrowing pressures, especially those stemming from the Middle East conflict, could drag the market down later this year.
Nationwide chief economist Robert Gardner pointed to March’s uptick as a sign the market was picking up speed again following a lull at the year’s start. But he flagged global energy price spikes as a factor “clouding the outlook.” Reuters
The government gets a private-sector ally in Aviva as it launches the new bank. Aviva picks up another UK holding, slotting it next to its insurance and retirement lineup. The bigger question: can this approach work past Liverpool and Manchester? That’s less certain.
