Hyde Group and Legal & General (L&G) have formed a new investment partnership to deliver more affordable homes across the UK.
The 50/50 partnership is launching with a seed portfolio of more than 1,000 homes – encompassing social rented and shared ownership homes – with the ambition for further joint investment. The homes will be acquired by two existing for-profit registered providers (FPRPs) which are jointly owned by Hyde Group and L&G (Halesworth and Lanecroft Homes).
The partnership will be jointly equity financed by Hyde and L&G and supported through L&G’s annuity portfolio, which deploys capital into productive assets that generate income to support long-term pension commitments.
Housing management services will be provided by the Hyde Group through Pinnacle Group’s platform, which Hyde acquired in October 2024.
Andy Hulme, group chief executive of the Hyde Group, said: “There’s a gulf between the funding available and the funding needed to deliver the affordable homes the country needs. Grant alone will not close it. The only way we can close this gap is by bringing pension and other responsible capital into the mix – and that is exactly what this innovative partnership delivers.
“Hyde offers institutional investors a complete end-to-end service, from investment structuring through to managing homes and the community around them, with every penny of commercial profit reinvested in building more affordable homes and improving existing homes. With L&G’s long-term capital and our national platform, we can deliver more homes, faster.”
Catherine Raynsford, managing director – stock acquisitions, L&G Affordable Homes, added: “Since establishing our affordable housing business in 2018, L&G has built a strong track record as a trusted leader in delivering high quality, affordable homes across the UK. This new partnership with Hyde marks an exciting milestone, combining our heritage and expertise with an innovative approach that aims to attract institutional investment and accelerate the delivery of much-needed affordable housing nationwide.”
Gareth Mee, CEO of institutional retirement at L&G, said: “The UK needs nearly a million affordable homes, and we face a stark shortfall without collective intervention. As a long-term investor in the UK economy, we have a track-record of deploying pensions capital into resilient, productive assets across the country, as reflected by our £2bn regional growth commitment. This innovative partnership will accelerate the delivery of new affordable homes nationwide, delivering strong, predictable returns to match our pension commitments with long-term investment that makes a tangible impact on local communities.”
