Our housing campaign
Our work on housing aims to improve the supply of housing in the UK, for people seeking to buy homes, for people who need to rent homes and to provide accommodation for people in later life. The UK’s housing crisis shows little sign of improving, with a severe housing shortage still causing house prices to rise artificially. An added problem is that some elderly people find it difficult to access accommodation suitable to their specific needs. We strongly support bodies that campaign on housing supply issues. One of the most prominent voices we support is that of Shelter, a charity who are dedicated to solving the problems of homelessness and raising housing issues.
Britain’s housing crisis
The 2015 general election campaign saw all parties committing to rectifying the UK’s housing crisis. Britain’s failure to build enough homes means that only around 125,000 new homes are being built each year to support a rapidly growing population when we used to build 400,000 new homes a year in the post war years. The government has announced an intention to deliver 275,000 ‘affordable’ new homes by the end of this Parliament.
Homebuilding forms one part of our direct investment programme, where we have committed to invest £15 billion into socially and economically useful assets in the UK. We invest assets into direct investments primarily to enhance the ‘risk adjusted’ returns for our shareholders. At the same time we are able to improve people’s lives by providing the capital to build new homes.
We invest in housing across the spectrum, covering a wide range of different sectors:
- Build to Rent
Since the beginning of 2015, our major area of focus has been to build homes in the rental sector. In 2015 we secured a build to rent site within English City Fund’s ‘New Bailey’ development in Salford and acquired a generation site in Walthamstow, London, which has planning consent for over 300 flats. In February 2016 we secured a build to rent development site in Bristol with planning consent to deliver 168 homes.
- Build to Sell
In March 2013, , Legal & General Capital (LGC) acquired a 47.75% stake in CALA Homes, alongside Patron Capital, which is now one of the UK’s top 10 biggest house builders by revenue.
- Modular Construction
In February 2016 LGC announced the launch of its modular housing business, Legal & General Homes, which will seek to modernise the home building industry by providing modern, precision-engineered factory manufactured houses through its new 550,000 square feet factory near Selby, Yorkshire. We expect to deliver our first houses from the factory in Q3 2016.
- Social Housing
In April 2015 we announced a £50 million, 40 year loan to Chorley Community Housing Ltd to fund a pipeline of 814 new homes over the next three years in the North West of England. At that time our completed transactions included seven loans to the social housing sector.
- Student Accommodation
We’ve invested in student accommodation, building modern student living units in places such as Greenwich, Aberystwyth, Hertfordshire and Southampton.
- Retirement Villages
We believe that the UK needs to widen the options available for retirement living and we are looking to invest in retirement villages to supplement our existing investments into care homes and ‘last time buyer’ housing.
Our work with Shelter
Shelter’s core mission is to help people overcome the misery of homelessness. They campaign on a number housing related issues, which contribute to homelessness such as overcoming the lack of supply of new homes and helping people who rent properties to be treated fairly by landlords. Although our employees work with Shelter at a local level, our main relationship is to support their campaigns to improve the UK’s housing stock.
Through Legal & General Investment Management’s ‘Real Assets’ team we work with other companies in the property industry to support LandAid. We became a partner in February 2014 and have supported a number of LandAid events.
LandAid works to improve the lives of children and young people in the UK who experience disadvantage due to their economic or social circumstances. They look for ways to apply the generosity and expertise of the industry to this cause, it invests in and adds value to projects across the UK. Funding buildings, equipment and staff, and providing free property advice, forming partnerships with charities working with some of the most vulnerable young people in the UK.
The Housing Learning and Improvement Network (LIN) provides innovative new solutions between investors, housing providers and local authorities to give people an affordable home.
Invest £15bn in UK Infrastructure into socially and economically useful areas, through our direct investment.
Provide our retail customers and employees with a much better idea of how we are providing economic growth and funding within their local areas.
Deliver 6 national consumer campaigns that position us as a thought leader in the debate on Housing, Later Life and Health.