Institutional investor Octopus Real Estate has ambitions to invest around £1bn into the affordable housing sector within five years, after acquiring a small ‘for-profit’ housing association from a Suffolk housebuilder.

The firm, which owns more than £3.4bn of assets, has bought Rex Housing, a registered provider with just 12 homes, from Lowestoft-based developer Oldman Homes. This will allow it to own affordable housing and qualify for housing grant straightway without the uncertain timeline of seeking registration for a new provider with the Regulator of Social Housing.

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