Legal & General’s affordable homes business has partnered with UK housing association MTVH to deliver over 2,500 shared ownership and affordable rent homes.
Legal & General Affordable Homes (LGAH) and MTVH’s shared ownership brand So Resi, have created a 50:50 partnership to deliver the assets over the next seven years. Around 2,000 of the 2,500 homes will be shared ownership with the remainder for affordable rent.
The joint venture expects to help many more households in London and the South-East to become homeowners.
The first homes built under the joint venture are expected to be completed by 2025, with construction set to begin on these homes within the next twelve months.
Geeta Nanda, CEO at MTVH and chair of the G15 group of London’s largest housing associations, said: “It is no secret that there is a chronic shortage of affordable homes in the UK. It is imperative that more such homes are built. Innovative steps such as this partnership between a housing association and a major financial institution are a good way forward.
“We look forward to working closely with Legal & General Affordable Homes to create comfortable homes as the foundation for people to live better.”
Ben Denton, CEO at Legal & General Affordable Homes, said: “At the moment, housing associations around the country are managing to create just a third of the new homes that are required to meet current need. By providing additional institutional investment, amounting to £1.15bn since 2018, we can significantly increase the rate at which these homes are built and the number of households helped.
“Our new partnership with MTVH and its shared ownership brand SO Resi will help us to achieve our goal of creating over 2,000 new affordable homes a year - and ensuring they are superb quality. For example, 96% of our completed homes have EPC ratings of A or B, to help residents combat the soaring costs of energy.”
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