You are viewing 1 of your 1 free articles
L&G acquires nearly 400 shared ownership homes from housing association for £35m
Legal & General Affordable Homes (LGAH) has acquired 390 shared ownership homes from Orbit Group for nearly £35m.
The homes are based in 32 local authorities, across the North and South Home Counties, the East and West Midlands, and Norfolk.
Orbit said the transfer is part of its strategy to “increase geographical efficiencies and to improve customer satisfaction, value for money and services”.
Jonathan Wallbank, group finance director at Orbit, said: “As one of the UK’s foremost not-for-profit housing groups, we’re committed to providing goo- quality, safe and affordable homes, and creating inclusive and sustainable neighbourhoods that prioritise the well-being and aspirations of residents.
READ MORE
“The transfer of these shared ownership homes to another responsible landlord is part of our strategy to increase geographical efficiencies and to improve customer satisfaction, value for money and services for customers.”
He said the proceeds will be reinvested into Orbit’s homes and communities.
Mr Wallbank added that the money will support the social landlord’s “mission to help address the critical lack of affordable housing in England through the delivery of over 5,700 mixed tenure, new homes and regeneration properties between 2024 and 2030”.
The acquisition has been funded by Legal & General’s Institutional Retirement division and forms part of its ambitions to increase its investment into the affordable housing sector.
Ben Denton, chief executive of LGAH, said: “Our vision is for everyone to have a high-quality, well-managed, sustainable and affordable home.
“Our business model balances the need for investors to see a fair and reliable return on their investment, while injecting much-needed additional capital to grow the affordable housing sector.
“At the moment, housing associations around the country are managing to create under a third of the new homes that are required to meet current need due to lack of funding and high interest rates.
“By acquiring this stock we are helping to ease pressure on local balance sheets so that they can then spend their limited funds in areas of real need.”
A recent report published by Savills found that shared ownership homes have added £6.5bn to housing associations’ turnover in the past decade.
