Public and private sector heavyweights have teamed up on an £860m push to build more than 2,250 homes in some of England’s most under-invested communities.

Homes England has formed a new joint venture with investor Swiss Life Asset Managers and Manchester-based social-impact developer Capital&Centric to target areas where housing demand is rising fastest but supply has stalled.

The agency will take a 40% stake in the vehicle, The Impact & Places Partnership, with the other partners sharing the remaining 60%.

The plan is to channel long-term institutional finance into mixed-use residential schemes over the next decade.

Housing Secretary Steve Reed said: “We will get Britain building again by backing brilliant homegrown developers like Capital&Centric, and bringing in major institutional investors like Swiss Life Asset Managers, to build the homes this country desperately needs.”

Homes England chief investment officer Simon Century said the JV would help unlock sites, boost SME developers and prove the value of large-scale private capital in accelerating delivery.

Tom Wilmot, joint managing director of Capital&Centric, said: “The strategy is all about delivering high quality neighbourhoods in a range of locations, not just core cities but also under-invested locations where the impact story is more compelling and the supply and demand dynamics are more favourable.”