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Budget Boost Accelerates L&G’s Prefab Homes Investment

Legal & General has confirmed that more prefab homes investment will be made at a 272-acre location in the village of Arborfield outside Wokingham thanks to increased confidence created by the Budget. 

The housebuilding branch of the pension company will increase its investment in ‘off-site’ construction and start building 1,500 homes at the end of 2018. This project is the second major L&G development as it seeks to profit long-term from the property market. 

L&G will build homes for sale and rent, as well as student and retirement properties. Many of these homes will be shipped from the recently opened factory in Leeds. Last year the firm announced that:

  • An investment of £55m would be made into the prefab operation
  • The site could have capacity to produce up-to 3,000 homes a year

It confirmed that its prefab homes investment, combined with a goal of building different types of homes, would reduce the time needed to complete the Wokingham development by five years.

Chancellor Philip Hammond said in the Budget that the government would advocate the use of modern construction methods, such as off-site home fabrication, to make delivery happen sooner. 

UK still behind Europe

Prefab homes investment is a lot more common in Europe, especially in Scandinavia, but has not made as big an impact in the UK. 

In addition to residences, the Arborfield site has planning permission for offices, shops, and a school to support the influx of residents. More than one-third of the homes will be classified as affordable. 

L&G chief executive Nigel Wilson said that the Budget set the groundwork for a real and sustainable boost to housing supply. 

Mr Wilson said that Legal & General would accelerate its production of housing and related infrastructure on larger sites where whole new communities could be created, like Arborfield and Crowthorne. 

L&G has stated that it intends to do for housing what the production line breakthroughs of Henry Ford did for the automotive industry, by building homes of superior quality more quickly and at lower cost than traditional means. The homes it produces use engineered timber and will arrive nearly complete, including carpets and painting. 

 

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