Legal & General has ploughed nearly £45m into Croydon council as part of an innovative approach around the local authority’s housing ambitions which both sides believe to be an industry first.

The partnership deal has seen L&G buy 167 homes – mainly two and three-bedroom flats and houses located in Croydon and neighbouring boroughs – from the local authority and then lease them back to the council over a 40-year term.

Croydon said it will rent out the homes, which it will manage through its own housing team, at Local Housing Allowance levels to previously homeless local families.