Prominent Legal & General is initiating an affordable homes business with the goal of delivering 3,000 new homes a year within four years.
Legal & General said that it was presently hiring a management team to operate the new division, which is expected to construct and purchase homes to combat an ongoing shortfall of affordable homes.
Nigel Wilson, chief executive of L&G, said that affordable housing was a prime example of underinvestment with low amounts of new equity capital being made available to the sector.
He warned that this position was not sustainable, either for the sector itself or the million-plus household on the current waiting list.
The affordable homes division is L&G’s most recent move into the British housing market, where it is becoming a key presence. The firm is already investing nearly £1.5bn in build-to-rent opportunities, with locations in Bath, Brighton, Bristol, Leeds, Salford, Walthamstow and Edinburgh.Its goal is to have 6,000 build-to-rent properties in planning, development, or operation by the end of next year.
Legal & General has also pledged to transform the UK housebuilding industry by building thousands of prefab homes at its new factory in LEEDS. The homes are put together and fitted out in the factory before being loaded on the back of trucks and being transported to their intended locations.