L&G invests £21.6m in Croydon Council housing

Legal & General has added a further £21.6m to its partnership with Croydon Council, which will provide 250 new affordable homes in the borough. The partnership is generating around £24.5m in savings for the council, and aims to bring 250 houses and flats back into use for families residing in emergency accommodation. L&G’s investment into the partnership totals £66.2m. More than 2,000 families require temporary accommodation in Croydon, according to L&G. The waiting list for affordable homes has reached 1.1m in England. The homes will be managed by Croydon Council’s housing team and leased on a 40-year term, after which they will belong to the council. Rents will be set at local housing allowance levels. The investment is made on behalf of Legal & General Retirement Institutional. Pete Gladwell, head of public sector partnerships at Legal & General, said: “Our strengthening partnership with Croydon Council highlights our determination to innovate and tackle the UK’s chronic housing crisis. “With this additional investment, we will be providing 250 homes and much-needed stability for some of the most vulnerable people in society. This is a great demonstration of our purpose to deliver inclusive capitalism, developing a structure which supports our long-term pension commitments whilst improving lives and helping to create further savings for the council to reinvest.” Councillor Alison Butler, Croydon Council’s deputy leader and cabinet member for Homes and Gateway Services, said: “There remains a strong demand for good quality affordable homes in Croydon and this innovative scheme offers us better value for money than the more traditional loans available to councils. “With this additional investment, we are now saving around £24.5m over the loan period, meaning we can assist even more people in the long term and provide the homes that local families need.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette