4 Feb 2017
Our colleagues in Legal & General Capital have team up with Dutch pension fund manager, PGGM, to launch a Build to Rent partnership which will initially invest £600m into building purpose built private rental housing across the UK, providing over 3000 homes.
As it currently stands the UK doesn’t achieve its minimum house building target – only building around 50% of its 250,000 annual requirement so forcing a higher proportion of the population into sub-standard rental accommodation. By entering into this partnership we aim to help address this crisis by increasing the supply of new homes.
Paul Stanworth, Managing Director of Legal & General Capital, said: "The UK rental market, compared to the US and Europe, is dysfunctional, with ever increasing rents and increasingly poor accommodation. For this to change, and renting to become more affordable, we need to invest in the ‘new’, and build new homes to rent, and just stop inflating the prices of old housing stock. At Legal & General we’re going to play our part by disrupting the market, and invest significant sums of long-term institutional money to build new rental housing, and develop a UK institutional rental market."
The developments will be purpose built, and of high standard. The sites will help urban regeneration, and incorporate modern green design and infrastructure. The partnership has been launched with three Build to Rent development schemes in Bristol, Salford and Walthamstow, which are forecast to deliver over 650 homes. There are also detailed discussions on the acquisition of numerous sites, all situated in well-connected urban locations where there is strong demand.
This investment supports our ambitions to increase direct investment into housing and creates attractive long term investment opportunities for our customers.