Insurance giant grows completions by more than 10%, including first affordable housing schemes

Legal and General increased its production of new homes to more than 2,800 last year, making it one of the UK’s biggest housing businesses.

Legal & General Wandsworth BTR scheme 2

The insurance giant said it grew production of homes for sale or rent by 11% in the year to December 2019, most of which was accounted for by its ownership of up-market housebuilder Cala Homes.

Cala on its own produced nearly 2,500 homes, increasing revenue by 6% to break the £1bn barrier. However, L&G said its new affordable housing business, set up in 2018, produced its first homes last year, adding to production from its later living, build-to-rent and modular housing businesses.

The affordable housing business has a pipeline of 3,500 homes across 14 housing associations, with an ambition to produce 3,000 units per year by 2023.

After well-publicised delays following its set-up in 2016, L&G’s modular business is now working on two schemes, one in Lockleaze, Bristol, and the other in Selby, north Yorkshire.

The Bonnington Walk scheme in Bristol is for 180 homes, with the council due to consider proposals this week.

L&G Homes Modular revealed last year that it had made losses of more than £75m since its inception, including a £28m write-off on equipment.

Overall, L&G said its capital investment division, LGC, which is largely made up of its housing businesses, made an operating profit of £363m, up 13% on 2018.

The business plans to invest £5bn in assets over the next three to five years.