UK insurer Legal & General have launched an affordable housing business, with the objective of providing 3000 new homes a year within a four-year time frame.
The company have claimed that they are currently recruiting a management team to run the new division, which is set to both build and buy homes to try and fix a “chronic shortfall” of affordable housing.
“Affordable housing is a classic example of underinvestment with minimal new equity capital being deployed to the sector,” the L&G chief executive, Nigel Wilson, said.
“This is not a sustainable position – either for the sector or for the 1.3m households currently on a waiting list.”
The move is L&G’s latest adventure into the UK housing market, where it is growing at a rapid pace. Already, L&G are investing about £1.5bn in the build-to-rent sector, with sites in Leeds, Bristol, Brighton, Edinburgh, Bath, Walthamstow and Salford.
By the end of 2019, the company are aiming to have 6000 build-to-rent homes in planning, development or operation.
In addition, L&G have promised to revolutionise the housebuilding industry, by constructing thousands of prefab homes.
This is set to be done from their new modular housing facility in Leeds, and the homes are both made and fitted out in the factory, before being transported by trucks to their set locations.