For-profit provider adds to growing housing portfolio as Orbit seeks geographical efficiencies

Legal & General Affordable Homes (LGAH) has bought 390 shared ownership homes from Orbit Group for nearly £35m.

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The for-profit provider says the acquisition is part of its affordable housing sector investment strategy which it says has delivered 16,000 homes since 2020.

The 390 homes are spread across 32 councils, across the North and South Home Counties, the East and West Midlands, and Norfolk.

Jonathan Wallbank, group finance director at Orbit, said the move is part of the landlord’s strategy to “increase geographical efficiencies and to improve customer satisfaction, value for money and services to customers.”

He added: “The proceeds will be reinvested in our homes and communities and used to build and regenerate homes in our key operational areas, supporting our mission to help address the critical lack of affordable housing in England through the delivery of over 5,700 mixed tenure, new homes and regeneration properties between 2024 and 2030.”

>>See also: Briefing: L&G Affordable Homes’ ambitious plans for expansion

Orbit manages 47,000 affordable homes in the Midlands, East and South East of England.

Ben Denton, chief executive at LGAH, said: “At the moment housing associations around the country are managing to create under a third of the new homes that are required to meet current need due to lack of funding and high interest rates. By acquiring this stock we are helping to ease pressure on local balance sheets so that they can then spend their limited funds in areas of real need.