The Scottish National Investment Bank (the Bank) has announced a significant investment of £50 million into Octopus Capital's Affordable Housing Fund.

This capital forms half of a new £100 million fundraising round for the Fund, aligning with the Bank's mission to invest in places that transform communities and support people to thrive.

The Bank's entire £50 million commitment will be strategically deployed in Scotland, enabling a minimum total investment of £100 million in new Scottish housing developments. The Octopus Affordable Housing Fund focuses on delivering high-quality, energy-efficient affordable homes across the UK, with a strong emphasis on social impact and sustainability in its new-build developments.

Crucially, this investment introduces an intermediate rent tenure—a first for the Fund and Scotland—where both the rental price and energy costs will be discounted by approximately 20% compared to standard market rents. These new homes will also be offered to key workers on a first-priority basis.

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Nicola Douglas, Executive Director – Sustainable Investments at the Scottish National Investment Bank, commented on the strategic investment: "The Affordable Housing Fund is a brilliant example of the innovative approaches - to both securing capital and ensuring homes are affordable - that we need to deploy at scale. Octopus Capital's approach to sustainable building and discounting both rent and energy takes a holistic approach to addressing cost-of-living pressures."

The funding will also facilitate the deployment of more than 1,000 Zero Bills homes across England and Scotland. These homes are equipped with cutting-edge green technology, including a heat pump, a battery, and solar panels, under a world-first tariff from Octopus Energy that guarantees residents will not pay a penny for their home energy bills for at least 5-10 years.

Ms Douglas added that the Bank was attracted to the Fund's approach to regenerating sites, utilising local supply chains, and supporting social inclusion, and was delighted that their investment is helping to unlock a further £50 million through the Fund for Scotland.

Jack Burnham, Head of Affordable Housing at Octopus Capital, confirmed the commitment: "This new capital also presents a few exciting firsts; this also marks our first time investing specifically into Scotland and its discounted market rent housing. We're hoping to transform communities there, providing energy-efficient, future-proofed housing to those that need it most."