A major German investment firm has announced plans to commit £1 billion to affordable housing in the UK, with the project expected to deliver up to 4,000 professionally managed homes
across the country’s regions and nations.
Prime Minister Andy Burnham welcomed the investment on 8 October during a visit to Berlin, where he met representatives of PATRIZIA, one of Europe’s largest real estate investment managers. The company confirmed that the funding would support the expansion of its new UK Essential Living Platform, developed in cooperation with regional mayors and local partners.
The initiative aims to channel long-term private investment into areas facing significant housing needs, while supporting regional development and improving access to professionally managed accommodation. By working directly with local authorities and regional leaders, the platform seeks to align investment with local priorities and housing demand.
Asoka Wöhrmann, PATRIZIA’s chief executive, said discussions with the Prime Minister had highlighted the scale of the UK’s affordable housing challenge and the opportunities it presents for institutional investors.
He stressed that neither public funding nor private capital could address the housing shortage independently. Closer cooperation between the two sectors, he argued, could accelerate construction and deliver lasting benefits for communities.
The proposed investment builds on approximately £4 billion that PATRIZIA has already invested in the UK, further strengthening the company’s presence in the British property market.
The announcement also formed part of wider efforts to deepen economic cooperation between the UK and Germany. During the Berlin visit, Burnham and German Chancellor Friedrich Merz convened the first UK-Germany Regional Growth Forum, bringing together business leaders to explore opportunities for investment, job creation and economic development.
The discussions focused on how stronger partnerships between businesses, cities and regional authorities could help spread economic growth more evenly across both countries.
Burnham said economic progress should benefit communities throughout the UK rather than remain concentrated in a limited number of locations. He pointed to Germany’s experience of regional development and local leadership as a potential source of lessons for Britain.
The Prime Minister described the meeting as the beginning of a closer partnership between businesses and regional communities in both countries, with the potential to generate employment and expand economic opportunities.
Both leaders also agreed to establish a more structured Regional Dialogue, bringing together local areas and regional representatives to identify further opportunities for cooperation. Work on the initiative is expected to continue, with the aim of holding the dialogue in 2027.
The £1 billion housing commitment represents a significant proposed private-sector contribution to affordable housing delivery, while the wider UK-Germany initiative seeks to strengthen investment links and encourage more balanced regional growth.
