Housing association MTVH’s shared ownership brand SO Resi and Legal & General Affordable Homes (LGAH) have joined forces to create a 50/50 JV that will deliver more than 2,500 shared ownership and affordable rent homes over the next seven years.
Around 2,000 of these homes will be sold through shared ownership via the SO Resi brand and the remainder will be available for affordable rent. Construction on the first homes, which are expected to be ready for occupation by 2025, will commence in the next 12 months.
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. Our research tells us that demand for our shared ownership properties exceeds supply in some instances by as much as ten to one, so we are delighted at the prospect of being able to expand our provision thanks to this exciting joint venture.
“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 LGAH, added: “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.”
