FINANCIAL services group Legal & General’s affordable housebuilding subsidiary has been granted registered provider (RP) status by the regulator of social housing.
Legal & General Affordable Homes Ltd (LGAH) was launched in April 2018. Achieving RP status is considered a major milestone in its business plan, as it means the company can now hold and manager regulated “affordable” housing assets.
Furthermore, the business will be able to accelerate its development — as well as management — of a “blend” of affordable housing tenures where the regulated status is required. These include both social and affordable rent and shared ownership homes under grant-supported and Section 106 schemes.
Legal & General also claims LGAH’s granting of RP status is a milestone for the housing sector as it highlights the role institutional capital has come to play in the funding streams for conventional housing association social landlords.
“Affordable housing has been a classic example of where a lack of new capital has had a big impact on hampering overall provision,” said Simon Century, head of affordable housing at Legal & General Capital, the group’s investment arm.
“Over 1.3 million households are on social waiting lists and the required provision is rising year on year. This is not a sustainable position. We are therefore delighted that the Regulator of Social Housing has registered Legal & General Affordable Homes, enabling us to deliver our business plan and commitment to the sector to make a genuine contribution to increasing supply whilst advancing overall service delivery. We are very much looking forward to getting on with the job and working towards delivering our first sites soon.”