Waypoint has launched its UK Affordable Single-Family Housing Fund focused on new build, affordable single-family housing. 

The vehicle will be kick-started with a £150m seed portfolio and targets potential annual returns to investors of over 15 per cent.

The new fund, which will be delivered in partnership with Wise Living, will build upon Waypoint’s expertise in real estate investment and asset management and Wise Living’s extensive experience as a specialist single-family Build To Rent provider.  

Wise Living is described as being amongst the most experienced and successful teams in the sector, having been operating for over 10 years and delivering over 7,500 new homes for many leading BTR investors.

The fund has a strong focus on environmental, social, and governance criteria and aims to new single-family housing schemes that are affordable and cater to the needs of key workers and those on average income.

Fund manager Paul Dennis-Jones says: “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.

“By prioritising properties in locations with easy access to essential local amenities and employment zones, we aim to provide not just bricks and mortar, but homes that support the well-being and economic stability of our tenants. This approach is not only socially responsible but also aligns with our goal of delivering sustainable, long-term returns to our investors,” he added.

Paul Staley, the managing director at Wise Living, adds: “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 provides 531 homes across seven sites, with a gross development cost of circa £150m, all of which are ready to start on-site imminently. 

Waypoint says sitting behind the seed portfolio is a wider identified pipeline of 1,979 homes across 25 sites with a gross development cost of circa £570m.