Legal & General Capital and PGGM have announced the launch of a build to rent partnership providing over 3,000 homes across the UK.
The partnership aims to help address the UK housing crisis by initially investing £600m into building purpose built private rental housing.
Paul Stanworth, Managing Director of Legal & General Capital, said the UK rental market was dysfunctional with ever increasing rents and increasingly poor accommodation.
“For this to change and renting to become more affordable, we need to invest in the ‘new’ and build new homes to rent, and just stop inflating the prices of old housing stock,” said Paul.
“At Legal & General we’re going to play our part by disrupting the market, and invest significant sums of long-term institutional money to build new rental housing, and develop a UK institutional rental market.”
Mathieu Elshout, Investment Director Real Estate at PGGM, added that investing in residential housing is the perfect long-term real estate investment because it provided relatively high income security and diversification relative to other sectors.
“This partnership allows us to build and own good quality residential assets in the UK at scale, with a high degree of control over our investments,” said Mathieu.
“As a responsible investor, we believe that we have an obligation to contribute to a sustainable world. We can do so via impact investment or investing in solutions, as we call it.
“This partnership not only addresses the supply/demand imbalance, it also aims to improve the UK’s built environment; acting as a catalyst for wider urban regeneration and creating rental stock in sustainable urban schemes centred around key transport hubs.”
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