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L&G’s affordable housing arm and G15 landlord strike 2,500-home shared ownership deal
Legal & General’s affordable housing arm has signed a deal with a major housing association to build more than 2,500 shared ownership and affordable rent homes in London and the South East.
Announcing the agreement this morning, L&G Affordable Homes (LGAH) and Metropolitan Thames Valley Housing (MTVH) said they aim to deliver 2,000 shared ownership properties and 500 affordable rent homes over the next seven years.
The joint venture (JV) partnership will see 2,000 of the homes sold through shared ownership via MTVH’s SO Resi brand.
The first properties built under the deal are expected to be completed by 2025, with construction set to begin within the next 12 months.
All home will be built to meet or exceed an Energy Performance Certificate (EPC) rating of B.
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The JV is the latest stage in LGAH’s growth as a for-profit affordable housing provider. After launching three years ago, it now operates more than 2,500 homes across the country, with a further 6,500 in its pipeline.
Earlier this year, LGAH struck a deal with house builder Lovell to deliver 3,000 new homes.
In September, LGAH secured a £150m ‘social’ loan to accelerate delivery of social rent, affordable rent and shared ownership homes across England.
MTVH, which currently manages or administers around 57,000 homes across the UK, will bring its experience in marketing and managing shared ownership homes, the organisations said.
Geeta Nanda, chief executive of MTVH, said: “This partnership couldn’t come at a better time, when rising house prices and the cost of living crisis mean that affordable routes into homeownership are needed more than ever.
“Our research tells us that demand for our shared ownership properties exceeds supply in some instances by as much as 10 to one, so we are delighted at the prospect of being able to expand our provision thanks to this exciting joint venture.”
Ben Denton, chief executive of at LGAH, added: “Our vision is for everyone to have a high-quality, well-managed, sustainable and affordable home. At the moment, housing associations around the country are managing to create just a third of the new homes that are required to meet current need.
“By providing additional institutional investment, amounting to £1.15bn since 2018, we can significantly increase the rate at which these homes are built and the number of households helped.”
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