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Vivid ramps up modular push in 1,000-home deal with Legal & General
Vivid has agreed a five-year joint venture (JV) with the modular housebuilding arm of Legal & General (L&G) to deliver around 1,000 new energy-efficient homes.
The deal will see “up to” 300 affordable “net zero” homes delivered a year across Vivid’s operating areas of Hampshire, West Sussex and Surrey. The first homes are expected to be delivered in 2023.
Vivid said no upper limit had been set on the value of the deal, but it believed it could be "in excess of £300m".
L&G Modular Homes claimed that its net zero regulated carbon homes are 73% cheaper to run than a typical home due to the use of thermally efficient materials, air-source heat pumps and solar panels.
The company has racked up significant losses since its launch six year ago as modular housing has struggled to become mainstream.
However, the Vivid deal comes off the back of a 400-home contract for L&G Modular Homes with Wolverhampton City Council, announced in September.
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Ilke Homes, another big player in the modular space, is also working with multiple housing associations on schemes.
For Vivid, which operates around 33,000 homes across the South of England, the deal with L&G is its second big tie-up with a modular firm in the space of two years. In late 2020, the association struck a 1,000-home deal with BoKlok, a JV between Ikea and construction giant Skanska.
Mark Perry, Vivid’s chief executive, said he believes the L&G and BoKlok deals are “complementary” to help it “accelerate” the delivery of modular homes.
In terms of tenures on the L&G deal, Mr Perry added: “The homes will be for both private and affordable relative to the site specifics, housing need and housing market.”
More broadly, Vivid is aiming to develop 17,000 new homes by 2030. In its last full-year, it revealed it completed 1,401 new homes, which was a record for the landlord.
Mr Perry added: “We [Vivid and L&G] are both committed to providing new homes to address the housing shortage and in particular for us where that helps meet our affordable housing ambitions.”
Rosie Toogood, chief executive of Legal & General Modular Homes, said the deal will “deliver much-needed high quality affordable homes that will make customers feel safe, comfortable, and enjoy where they live”.
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