UK affordable housing backed by world’s largest property investor


New-York based private equity fund Blackstone is investing in Sage Housing Association to help the firm buy affordable housing allocations from developers.

Blackstone Group currently owns the biggest property rental company in the US – Paramount Group – and its investment in Sage is expected to generate a net yield of 5%.

The funds will be used to allow Sage to buy private developers’ Section 106 allocations – a part of the Town and Country Planning Act 1990 that means property developers must offer something to the local community that will enhance the local area in return for the granting of planning permission for their development.

Sage has provided homes for more than 100,000 families across the public and private sectors, and claims to use “a long-term approach and significant new institutional investment [to provide] quality affordable homes at scale”.

Controversial claims

The investment has sparked some fears that tenants could be outpriced as rents may be forced upwards in order to meet the targeted returns.

Tom Murtha, co-founder of SHOUT, which campaigns for more investment in social housing, said: “(Blackstone and Sage’s) purely profit motive is contrary to the social purpose objectives of most traditional housing associations.

“To make the return they need … Sage and Blackstone would increase rent beyond the means of those on low-income, in the greatest need.”

Building more affordable housing is now a top priority in Britain as the number of new homes being built has not kept up with demand, which has led to rising house prices and rents, as well as an increase in homelessness.

As the country continues to gear up to leave the European Union, some fear that a reduction in construction workers from the EU will cause major problems and make hitting Phillip Hammond’s ambitious targets impossible.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

UK affordable housing backed by world’s largest property investor

UK affordable housing backed by world’s largest property investor


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.