Legal & General confirms it is actively looking at affordable housing schemes in Sheffield, Doncaster and Leeds

LEGAL & General has confirmed it is actively looking at developing affordable housing schemes in Yorkshire.
An example of an affordable Legal & General housing scheme.An example of an affordable Legal & General housing scheme.
An example of an affordable Legal & General housing scheme.

Legal & General has provided £100 million of long term debt financing to its affordable housing business, as it opens the door for UK pension money to back the provision of housing.

A further £175m of development finance is being provided by a consortium of external investors to support the delivery of its current pipeline of 3,500 homes.

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In a statement, Legal & General said: "Legal & General is uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide new jobs, housing, productivity and wage growth.

"Affordable housing is an appropriate asset for Legal & General’s Pension Risk Transfer business, offering a secure portfolio of inflation-linked rental income which delivers long-term, diversified, stable returns.

"This latest investment demonstrates how Legal & General’s varied capital streams can be put to work in order to tackle the UK’s housing crisis and deliver extraordinary social outcomes."

The UK continues to suffer a growing crisis as 1.3 million households remain on waiting lists for social housing, Legal & General said.

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"One in three low income earners have had to borrow money to pay their rent and the steep decline in social housing has led to huge increases in government welfare costs, as well as rising homelessness,'' the statement said. " Legal & General is leading the evolution of the affordable housing sector; committed to raising service standards and deploying long-term institutional capital into a sector which continues to suffer from chronic undersupply.

Nigel Wilson, CEO of Legal & General, said: “Legal & General’s continued activity in the affordable housing sector demonstrates our unique ability to create real assets which match our long term pension liabilities, recycling the UK’s hard earned savings and pensions to support those most in need in society. We have already directly invested over £22bn into new homes, urban regeneration, clean energy and transport infrastructure.

"Bringing in pension fund capital gives us the scope to do even more. This is inclusive capitalism at its best.”

A spokesman said : "We are activity looking at Yorkshire and the surrounding area to contract on new affordable housing schemes.

"We are currently exploring a number of opportunities across the region including Sheffield, Doncaster and Leeds."

The spokesman stressed that these talks were in their early stages.