Legal & General (L&G), a multinational financial services company in the UK, has announced the launch of affordable housing business, which will probably plug up the gap in the UK property market.
The organization has asserted that the new section, L&G Affordable Homes, focuses on purported inexpensive properties, which are below 80pc of the market rate. Further, L&G added that it aims toward more traditional social housing and shared ownership properties. The company has announced the plan to build about 3,000 homes per year in the next 4-years time. This step will put forth the company’s status as one of the principal inexpensive and budget-friendly housing providers in the UK market.
Over the last decade, around 30,000 affordable homes are constructed in the UK each year, which intensifies the need of constructing new houses for about 1.3 million families needing accommodation. Nigel Wilson, L&G Chief Executive, has shed light on the fact that while the UK is a big marketplace to invest, the under-investment from last 30 years has resulted in poor productivity, low wage growth, and a number of collapses in the UK market. Reasonably priced housing is the section denoting one of the best example of under-investment with minimal new equity funds being invested to the sector.
L&G has also asserted that it will work together with operating companies providing the home management and will utilize its own capital for home development. In 2017, the firm has finalized a deal which committed to buy Inspired Villages, a retirement housing developers. This is considered to be the company’s initiative toward making the significant steps into the housing market for the older population in the UK.
Recently, the organization also has ramped up showing its efforts making companies focus on gender balance, executive pay, and climate change.