14 November 2022
Summary:The new partnership will help combat the cost of ownership crisis, allowing more people to get a foot on the property ladder.
MTVH and Legal & General Affordable Homes (LGAH) have joined forces to create a 50:50 joint venture targeting the delivery of over 2,500 shared ownership and affordable rent homes over the next seven years in London and the South-East.
Of the 2,500 homes, around 2,000 will be shared ownership, enabling many more people to get a foot on the property ladder. The remainder will be available for affordable rent.
The first homes built under the Joint Venture are expected to be completed by 2025, with construction set to begin on these homes within the next twelve months. All homes will be built to meet or exceed EPC B energy efficiency standards.
Around 2,000 of the homes will be sold through our SO Resi shared ownership brand, boosting access to affordable homeownership. This is especially timely, with the current interest rate environment making shared ownership a relatively more attractive housing product.
This forward-thinking Joint Venture merges the financial resources and expertise of Legal & General Affordable Homes with decades of experience in developing, selling and managing quality affordable housing at MTVH.
Geeta Nanda, CEO 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 that affordable routes into homeownership are needed more than ever. Ultimately, it will help around 2,000 households to become homeowners, buying a share in their own home. In the current challenging economic environment, this type of opportunity enabling people to build a better future is needed more than ever.
“It is no secret that there is a chronic shortage of affordable homes in the UK. It is imperative that 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. We look forward to working closely with Legal & General Affordable Homes to create comfortable homes as the foundation for people to live better.”
Ben Denton, CEO at Legal & General Affordable Homes, said: “Our vision is for everyone to have a high-quality, well-managed, sustainable and affordable home. 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.
“Our new partnership with MTVH and its shared ownership brand SO Resi will help us to achieve our goal of creating over 2,000 new affordable homes a year – and ensuring they are superb quality. For example, 96% of our completed homes have EPC ratings of A or B, to help residents combat the soaring costs of energy.”