Legal & General and Hyde Group have formed an investment partnership to build affordable homes across the UK.
The partnership will be supported through L&G’s annuity portfolio, which deploys capital into productive assets that aim to generate income to support long-term pension commitments, whilst helping to drive regional regeneration and delivering long-term positive societal impact.
The investment comes as part of L&G’s £2bn commitment to drive positive social impact and growth across the UK.
The 50/50 partnership is launching with a seed portfolio of over 1,000 homes – encompassing social rented and shared ownership homes – with the ambition for further joint investment.
Andy Hulme, chief executive of the Hyde Group, says: “There’s a gulf between the funding available and the funding needed to deliver the affordable homes the country needs. The only way we can close this gap is by bringing pension and other responsible capital into the mix – and that is exactly what this innovative partnership delivers.”
According to the National Housing Federation, England needs 90,000 new social homes a year for a decade to meet current market shortfalls.
L&G is a signatory to the Mansion House Compact, which includes allocations to unlisted equities as part of a diversified private markets multi-asset portfolio.
