Legal & General Affordable Homes has acquired 390 shared ownership homes from Orbit Group for nearly £35 million. This acquisition aligns with Legal & General’s goal of increasing investment in the affordable housing sector, backed by its Institutional Retirement division.

The newly acquired homes are spread across 32 local authorities, including regions in the North and South Home Counties, East and West Midlands, and Norfolk. LGAH, a direct investor, developer, and operator in residential property, aims to address the UK’s shortage of affordable housing and is on course to deliver over 10,000 affordable homes by 2027.

With one of the UK’s largest and most diverse residential platforms, LGAH has scaled up various operating businesses across multiple tenures. Since 2020, Legal & General has delivered over 16,000 homes, leveraging its capital to build houses for sale and rent, provide retirement communities, and explore new methods for delivering affordable housing.

Ben Denton, CEO of Legal & General Affordable Homes, said, “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.”

He added, “At the moment, housing associations around the country are managing to create under a third of the new homes that are required to meet current need due to lack of funding and high interest rates. By acquiring this stock, we are helping to ease pressure on local balance sheets so that they can then spend their limited funds in areas of real need.”

Andrew Kail, CEO at Legal & General Institutional Retirement, commented, “By channelling pensions capital to invest in the affordable homes sector, we are proud to help provide high-quality housing across the UK. These homes, spanning 32 local authorities, will help many people get on the property ladder while also providing long-term investment returns that can help us deliver security in retirement for our pension holders.”

Jonathan Wallbank, group finance director at Orbit, stated, “As one of the UK’s foremost not-for-profit housing groups, we’re committed to providing good quality, safe and affordable homes, and creating inclusive and sustainable neighbourhoods that prioritise the wellbeing and aspirations of residents.”

He continued, “The transfer of these shared ownership homes to another responsible landlord is part of our strategy to increase geographical efficiencies and to improve customer satisfaction, value for money, and services for customers. The proceeds will be reinvested in our homes and communities and used to build and regenerate homes in our key operational areas, supporting our mission to help address the critical lack of affordable housing in England through the delivery of over 5,700 mixed tenure, new homes and regeneration properties between 2024 and 2030.”