Hyde and L&G announce major investment partnership

Hyde and Legal & General have announced the creation of a new investment partnership to build more affordable homes.

The 50/50 joint venture between the insurance giant and the 125,000-home housing association will launch with a seed portfolio of more than 1,000 social rented and shared ownership homes.

These homes will be acquired by Halesworth Limited and Lanecroft Homes Limited, two existing for-profit registered providers which are jointly owned by Hyde and L&G.

The partnership will be jointly equity financed by the two organisations and supported L&G’s annuity portfolio, which deploys capital into assets that will generate income to support long-term pension commitments.

The pair said the funding model would enable them to invest on a greater scale more quickly. 

Housing management services for the partnership will be provided by Hyde through its Pinnacle Group platform. 

Andy Hulme, group chief executive of Hyde, said there was “a gulf between the funding available and the funding needed to deliver the affordable homes the country needs” and that “grant alone will not close it”. 

“The only way we can close this gap is by bringing pension and other responsible capital into the mix – and that is exactly what this innovative partnership delivers,” he said.

Catherine Raynsford, managing director for stock acquisitions at L&G Affordable Homes, said: “Since establishing our affordable housing business in 2018, L&G has built a strong track record as a trusted leader in delivering high-quality, affordable homes across the UK. 

“This new partnership with Hyde marks an exciting milestone, combining our heritage and expertise with an innovative approach that aims to attract institutional investment and accelerate the delivery of much-needed affordable housing nationwide.”