First homes due for completion in 2025
Housing association Metropolitan Thames Valley Housing (MTVH) and ‘for-profit’ provider L&G Affordable Homes have formed a new joint venture.
The 50:50 business aims to build 2,500 homes over the next seven years, with 2,000 of the properties for shared ownership and 500 for affordable rent.
The homes will be managed by 57,000-home MTVH’s shared ownership business So Resi, with L&G providing funding and sharing the revenue. The amount of funding going into the venture from both parties is undisclosed.
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. A spokesperson said all homes will be built to meet or exceed EPC “B” energy efficiency standards.
Geeta Nanda, chief executive of MTVH said the organisation’s research shows “demand for shared ownership exceeds supply in some instances by as much as 10 to 1”.
She said: “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.”
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L&G Affordable Homes last year said it was aiming to treble its turnover from £250m to £775m and trebled its annual completions from 1,000 home to 3,000 homes by 2025. The for-profit provider buys homes through section 106 planning agreements, which are then managed by housing associations through management agreements. It also builds directly and has been allocated £126m to build 2,121 homes over five years through a strategic partnership agreement with Homes England.
It is just one of several L&G housing businesses which together are targeting 10,000 homes a year.
MTVH, which has a turnover of more than £400m, has secured funding to deliver 2,500 homes through strategic partnership agreements with Homes England and the Greater London Authority.
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