Long Harbour Raises £100 Million from National Housing Bank as Single-Family Housing Fund Enters Operational Phase

Long Harbour's Single Family Housing Fund (LHSFF) has entered its operational phase, taking management of completed homes at three sites in Kent, Essex and Derby while securing an additional £100 million equity commitment from the National Housing Bank — bringing total equity raised to approximately £400 million against a £1.2 billion fund target.

The capital injection from the National Housing Bank adds to the fund's original £300 million seed equity commitment from South Korea's National Pension Service, which anchored LHSFF at its December 2024 launch. The fund has now committed roughly £180 million to £200 million across more than 450 homes, with approximately £500 million of identified pipeline opportunities.

First Operational Sites Span Kent, Essex and Derby

LHSFF's initial operational portfolio spans four developments across three regions. In Kent, the fund has taken handover of homes at Orchard Mill in Ditton, a forward-funded scheme developed in partnership with Miller Homes. Located off Kiln Barn Road, Ditton, Kent, the development offers two- to five-bedroom houses positioned within commuting distance of Maidstone and the broader South East.

In Essex, the fund has taken on Newhall in Harlow, a 105-home acquisition from Vistry Group within the long-running Newhall masterplanned community on Harlow's eastern fringe. The Newhall transaction represents LHSFF's first deal and serves as an anchor for the fund's early portfolio. Two additional sites, both forward funded with Bellway, are also now operational: Snelsmoor Village in Derby and Weavers Field in Desborough.

All homes across the portfolio are let and managed by Home by Way of Life, Long Harbour's residential lettings and management business. Operations are underpinned by Olympustech.ai, a proprietary residential management platform that consolidates sales, marketing, operations, risk and financial performance data into a single system.

Capital Structure and Debt Financing

Alongside its equity commitments from the National Pension Service and the National Housing Bank, LHSFF has secured a debt facility from Barclays with initial commitments of £66.8 million, covering the fund's first two completed transactions. The strategy pairs institutional equity with bank leverage as the fund scales toward its £1.2 billion total investment target.

LHSFF is Long Harbour's second single-family venture. The firm's first single-family vehicle launched in 2015 and operated more than 500 properties across the South East of England. The current fund launched in December 2024 and plans to be operational on several additional sites by the end of 2026.

Sites Target Areas of Strong Rental Demand

Long Harbour has positioned LHSFF's portfolio in locations it describes as having strong population growth, high employment density and transport connectivity. The fund's forward-funding arrangements with housebuilders including Miller Homes, Vistry Group and Bellway allow it to acquire completed rental homes within broader for-sale schemes.

The early portfolio also includes 369 rental homes sourced from Dandara across Horsham and Great Dunmow, alongside the sites now entering the operational phase.

"Taking handover of our first homes is a defining moment for the Fund, as we move from deploying capital into building new homes to generating long-term income for our investors," said Jack Spearman, Managing Director of Single Family Housing at Long Harbour. "Alongside this progress we continue to grow our pipeline, reflecting the strength of our partnerships with leading housebuilders and the depth of demand for high-quality single family rental homes across the UK. This is just the start for LHSFF as we look to scale the Fund towards its £1.2 billion target."

Outlook

With equity commitments from both the National Pension Service and the National Housing Bank now totaling approximately £400 million, and a Barclays debt facility in place, LHSFF has established a capital base spanning sovereign pension capital, a government-backed housing institution and commercial bank lending. Long Harbour has indicated the fund will continue expanding its housebuilder partnerships and site pipeline through 2026 as it works toward its overall investment target.

Sources: Long Harbour