L&G and PGGM announce 3000 new homes.
Legal & General Capital (LGC) and Dutch pension fund manager, PGGM, have today announced the launch of a Build to Rent partnership.
The partnership will initially invest ,~600m into building purpose built private rental housing across the UK, providing over 3000 homes.
The LGC and PGGM partnership aims to help address the UK housing crisis by increasing the supply of new homes. The UK does not achieve its minimum house building target - building only around 50% of its 250,000 annual requirement, forcing a higher proportion of its population into sub-standard rental accommodation.
In America and Europe, fully fledged institutionally funded and managed rental property markets have developed to increase the supply of homes, lower prices and provide better quality products and service. In the UK the rental market is different, due to the lack of supply of quality homes, and its cottage industry nature. LGC plans to disrupt the status quo of ever increasing rental rises by investing long-term institutional funds into building new homes to rent at scale, and by developing a UK institutional rental market.