Housing association MTVH and Legal & General Affordable Homes have joined forces to deliver 2,500 homes in London and the South East over the next seven years.
The 50:50 joint venture has plans for 2,000 shared-ownership homes, sold through MTVH’s shared ownership brand, So Resi, with the remainder for affordable rent.
Geeta Nanda (pictured), chief executive at MTVH and chair of the G15 group of London’s largest housing associations, said: “This partnership couldn’t come at a better time, when rising house prices and the cost-of-living crisis mean affordable routes into homeownership are needed more than ever.
“It is no secret there is a chronic shortage of affordable homes in the UK. It is imperative more such homes are built. Innovative steps such as this partnership between a housing association and a major financial institution are a good way forward.”
Ben Denton, chief executive at LGAH, said: “Our business model balances the need for investors to see a fair and reliable return on their investment while injecting much-needed additional capital to grow the affordable housing sector.
“At the moment, housing associations around the country are managing to create just a third of the new homes that are required to meet current need. By providing additional institutional investment, amounting to £1.15bn since 2018, we can significantly increase the rate at which these homes are built and the number of households helped.”
The jv plans to build homes that meet or exceed EPC B energy efficiency standards. The first homes are expected to be completed by 2025, with construction set to begin within the next 12 months.
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