L&G To Provide 3,500 Affordable Homes

Property News, UK Property

Legal & General Affordable Homes (“Legal & General”) announces that it has partnered with 14 established housing associations and providers to form a panel which will lead its housing operations across the UK. Creating a nationwide network of management partners, the panel will bring local expertise and the established infrastructure to support Legal & General in delivering its pipeline of 3,500 affordable homes.

Legal & General is leading the evolution of the affordable housing sector, as it commits to raising service standards and deploying long-term institutional capital to increase provision in a sector which continues to suffer from chronic undersupply.

Today’s announcement follows an extensive, two stage tender process, launched in March 2019, which received 140 expressions of interest.  Legal & General has selected partners with regulatory ratings of V1/G1, who have demonstrated a commitment to deliver exceptional customer services to residents. The selected panel consist of; RHP, Optivo, Jigsaw, Flagship, Karbon Homes, Great Places, Chelmer Housing Partnership, Accord, Pinnacle, Stonewater, Regenda, Saxon Weald, Coastline and Raven.

Across its growing portfolio, Legal & General is delivering a mix of social, affordable rental and shared ownership homes, within Section 106 agreements and grant supported homes. As experienced affordable housing providers, Legal & General’s selected panel manages in excess of 300,000 affordable homes. The coverage of its panel means Legal & General has the capacity to allocate two providers to each UK local authority, supporting its ambition to deliver 3,000 affordable homes each year.

Collaboration with top quality housing associations has been a key stated aim for Legal & General as it establishes itself in this sector. Meeting this objective, Legal & General’s new partnerships seek to offer security and a de-risked process to the panel, meaning members can focus exclusively on service delivery and resident experience. Its contractual obligations offer certainty of a minimum 10 year relationship, whilst also insulating providers from risks such as rent collection penalties. Legal & General hopes to build on this relationship by exploring further opportunities, such as collaborating with providers in the direct development of homes. 

Ben Denton, Managing Director, Legal & General Affordable Homes, says: “After a rigorous tender process, focusing on the quality and customer service offering of 140 UK-wide housing associations, we have now established an experienced panel of management partners. With residents already moving into our first schemes, this represents another milestone as we continue to pioneer the Institutional Registered Provider model. There is an urgent need to keep innovating in this sector and to provide quality, stable homes for the 1.1 million households on waiting lists in England.”

Matthew Harrison, Chief Executive at Great Places, one of Legal & General Affordable Homes’ new management partners, says: “Great Places is delighted to be involved in this innovative new partnership with Legal & General. We will work across 27 different areas, helping to create successful communities and much needed, quality affordable rented and shared ownership homes. Both organisations have a shared vision to deliver excellent customer service, bespoke to individual needs and tenures, and we have a strong track record in successful partnerships, such as in our other high profile projects like Park Hill in Sheffield. ”

Claire Kober, Managing Director at Pinnacle Group, one of Legal & General Affordable Homes’ new management partners, says: “Legal & General’s entrance into the affordable housing market is an exciting proposition for everybody committed to increasing the supply of well-managed, high quality affordable homes.  Pinnacle is delighted to be working with Legal & General and is proud to have been selected as part of their panel of providers. We believe we can make a considerable contribution to their ambition to positively transform customer experience within the sector.”

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