L&Q reviews options for £1.2bn PRS portfolio

Housing association L&Q has appointed BNP Paribas Real Estate to undertake a review of its £1.2bn private rented sector portfolio. A spokesperson for L&Q said the business is “exploring opportunities to generate additional financial capacity” to invest in the core affordable housing aspect of its business. L&Q’s PRS portfolio is comprised of 2,724 homes in London and the South East, according to the group’s financial results ending March 2023. The subsidiary generated a revenue of £47m and an operating margin excluding change in revaluation of 58%. It had a gross rental yield of 4.3%. The L&Q spokesperson said: “One in 23 children in London are homeless, and there is a significant need for new social housing to meet the scale of this crisis. In the absence of a long-term government plan for housing that delivers the funding our sector needs, L&Q – like all housing providers – is exploring opportunities to generate additional financial capacity to invest in affordable housing. As part of this, we keep our non-core social housing activity under regular review, but no final decisions have been taken.”