Legal & General to provide 250 homes for homeless families in Croydon

The partnership, which is creating around £24 million in savings for the council will bring 250 houses and apartments back into use for families currently residing in emergency accommodation. The announcement follows the establishment of the partnership last year, bringing Legal & General’s total investment to £66.2m.

With waiting lists for affordable homes reaching 1.1 million in England, and over 2,000 families requiring Temporary Accommodation in Croydon alone, Legal & General is delighted to be making a further commitment to this pioneering partnership, creating a blueprint for institutions and the public sector to work together to tackle the UK’s housing crisis.

Legal & General’s investment, which requires no Government affordable housing grant and does not rely upon Section 106 contributions, represents a first for the sector and an innovative new model that could be rolled out across other London Boroughs and UK local authorities. The homes will be managed by Croydon Council’s housing team and leased on a 40-year term, after which they will belong to the council. Rents will be set at Local Housing Allowance (‘LHA’) levels.

The investment, being made on behalf of Legal & General Retirement Institutional, provides an excellent match for Legal & General’s long term annuity and pension commitments. It demonstrates the positive social impact that a proactive local authority and long-term investment can deliver, enabling Croydon Council to meet its affordable housing needs and reducing the burden on the public purse.

Croydon Affordable Housing

The 250 homes are mainly two- and three-bed flats and houses, plus a four-bed house and a five-bed house, all of which are for Croydon families previously in temporary accommodation and are run by Croydon Affordable Tenures, part of Croydon Affordable Housing (CAH), a local housing charity set up by the council.

In addition 96 properties which were purchased by the council and used for temporary accommodation were transferred to the partnership with CAH. All rooms in the CAH-run homes meet the Mayor of London’s space standards, and tenants get an assured shorthold contract instead of the usual six months with private landlords.