L&G to Deliver 117 New Homes
Legal & General announces that it has acquired a new suburban build-to-rent (“SBTR”) scheme in Great Haddon, Peterborough – to deliver 117 new family rental homes. Legal & General’s SBTR arm, which launched at the end of 2020, is now scaling a portfolio of large scale ‘single family’ rental communities in suburban locations across the UK.
As an investment market forecast to grow to in excess of £200bn, Legal & General aims to be the UK’s first choice SBTR platform creating much needed, high quality family homes in areas connected to schools, transport infrastructure and key amenities. Great Haddon, purchased for £25million, consists of two, three and four-bed houses which will be attractive to Legal & General’s target market.
The development, which is being delivered by mixed-tenure developer Countryside, represents the first phase of a new expansion of southern Peterborough. The community will be bounded by existing woodland and new water features as well as new schools and community amenities to be delivered as part of the wider site.
In line with Legal & General’s wider ambitions for its SBTR projects, Great Haddon will be community focused and service-led, offering residents choice, security of tenure and flexibility. This level of offering is largely unavailable in the wider residential market, particularly outside the UK’s urban centres. Legal & General SBTR developments will also be designed to reflect new ways of living, post-COVID, such as incorporating home offices and offering access to more extensive outdoor space.
Across its new developments, SBTR will be implementing a robust ESG framework in order to enhance and create viable, long-lasting communities. Alongside Legal & General’s other housing businesses, SBTR aims to be operationally carbon net zero from 2030.
As a Group, Legal & General has a strong track record within the build-to-rent sector. Having launched its Build to Rent Fund in 2017, it now has over 5,500 homes in operation or development across the UK’s major towns and cities. The SBTR sector, however, has lacked the same concentration of investment, with less than 1% of the market having benefitted from patient capital compared to c. 6% for the urban sector. Recognising this untapped potential and the societal need for high quality family homes to rent, Legal & General is at the forefront of institutionalising the suburban rental sector.
David Reid, managing director, Legal & General Suburban Build to Rent said “Build to rent as a sector has consistently demonstrated value to investors, delivering robust and defensive income streams, suitable for patient capital investment. This is clearly about more than strong investment prospects for us; it’s about providing high quality rental housing for families across the UK, as working practices and lifestyle demands continue to evolve. We are delighted to be developing our first scheme with Countryside to meet these aims and look forward to working with Countryside in future.”