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Legal & General Announces Plans to Build on Offsite Home Development Strategy

Legal & General has confirmed that it will be expanding on its plan to build ready-made homes throughout the country.

According to Construction News, a L&G executive team member recently said that its manufacturing factory, which is located offsite, could supply other companies currently operating in the housing sector.

This news arrives in the wake of an announcement the company made earlier this year, in which it stated that half a billion pounds would be invested in the construction of homebuilding factories.

Bill Hughes, managing director for L&G Property, commented on the plans at the CN Developer Forum. He said that L&G could definitely become an important part of other businesses’ supply chains.

Mr Hughes cited L&G’s access to long-term capital, which he described as an advantage that other market players might not have, and which would enable the company to join the supply chain of other firms.

Last February L&G joined the offsite housebuilding market by investing £55m in a factory outside of Leeds. This facility became Europe’s biggest offsite manufacturing facility. L&G entered into a lease with Logicor, a local business, to take over a huge 550,000 square foot warehouse in Sherburn-in-Elmet. A recent report suggested that the location was expected to build 3,000 homes or 4,500 flats every year. A new division called L&G Homes was created for the purpose of managing the new properties.

 

Specialists in Construction Insurance

Mr Hughes said that the new factory would be the first of half a dozen similar undertakings. He said that if this venture is a success and creates demand, more will definitely follow.

The L&G Property managing director added that the company is determined to control its own supply chain, to avoid depending on other businesses within the chain. He added that this stipulation could even cover provision of timber, with all timber for the homes being made at the factory.

L&G is already a participant in the residential sector. It works closely with Touchstone, a property management company, to help local councils provide new build-to-rent homes.

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