Thriving Investments kicks off £200m GM key worker housing fund

New Avenue Living Greater Manchester Housing Fund has secured an initial £40m of backing from the GMPF, GMCA, and Better Society Capital to build a 1,000-unit portfolio of affordable homes over the next three years.

Thriving Investments, part of Places for People, already has its eyes on a maiden forward fund deal for part of the £150m Church Wharf scheme in Bolton, as reported by Place North West in February.

The aim of the fund is to provide rental homes for key workers capped at 80% of the market rate in order to tackle the affordability crisis impacting many looking for a place to live. A supply and demand imbalance in Greater Manchester has seen rents rise significantly in recent years, pricing people out of the market.

Cath Webster, chief executive at Thriving Investments, said: “Far too many essential workers, who make a huge contribution to the UK economy and society, are struggling to secure long-term, quality, safe housing, which acts as a catalyst to employment, health and education, and is the foundation of strong communities.

“This new Fund is our first essential worker housing strategy in England and reflects the team’s expertise in finding solutions to the challenge the UK faces in delivering genuinely affordable rental properties, at scale, in critically undersupplied regions.”

The initial committed capital comes in the form of £30m equity investment from the Greater Manchester Pension Fund and Better Society Capital and a £10m loan from the Greater Manchester Combined Authority.

Webster said the backing was “a strong endorsement of our vision to marry institutional capital and public funding via strategic partnerships to help solve the housing crisis”.

Thriving Investments is targeting a £200m, 1,000-home portfolio over the next three years, through a mix of forward funding and forward purchase structures. It plans to work with SMEs to deliver schemes of 50-150 units.

Touchstone Property Management, the specialist property management business of PfP Group, will manage the completed homes.

The Greater Manchester fund mimics a model already established in Scotland. North of the border, Thriving Investments runs a £220m fund launched in 2018, which aims to deliver 1,200 homes.

Paul Dennett, deputy mayor for Greater Manchester and GMCA portfolio lead for Housing First, said: “This fund is a prime example of how we’re working together with the Greater Manchester Pension Fund and the private sector to tackle one of the biggest challenges facing our city-region: ensuring people have access to safe, decent, and genuinely affordable homes.

“In Greater Manchester, we’ve been clear: housing is a fundamental right, not a privilege. Through bold, innovative partnerships like this, we’re showing how public and private capital can be mobilised to deliver real social impact. By investing in high-quality homes at affordable rents, we’re not just helping key workers find somewhere to live, we’re supporting local jobs, regenerating communities, and making sure economic growth works for everyone.”

Cllr Eleanor Wills, chair of Greater Manchester Pension Fund and Leader of Tameside Council, said: “Our Impact Portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return. I am proud that the Greater Manchester Pension Fund, alongside Greater Manchester Combined Authority, is supporting Thriving Investments and its effort to deliver affordable essential worker housing in Greater Manchester. The strategy supports the government’s plan to provide much-needed affordable homes for hardworking families while ensuring strong, low-risk returns to secure the pensions of our members.”