Legal & General Capital - which has recently made clear its intention to become a major Build To Rent player in the UK - has announced plans to spend £600m providing 3,000 units to let.
Working with Dutch pension fund manager PGGM, Legal & General Capital says the programme will not simply provide more rental accommodaqtion but also assist with urban regeneration, and incorporate modern green design and infrastructure.
The first schemes will be Bristol, Salford and Walthamstow, forecast to deliver over 650 homes. The L&GC/PGGM partnership is also in detailed discussions on the acquisition of numerous sites, all situated in well-connected urban locations where there is strong demand.
“The UK rental market, compared to the US and Europe, is 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” says Paul Stanworth, L&GC managing director.
In America and Europe, institutionally funded and managed Build To Rent units have existed for many years - they are mostly known as Multi-Family Homes in the US.
PGGM has invested in Build to Rent in other countries for over 40 years and currently has almost £3 billion of residential investment exposure through its strategic partnerships in the Netherlands and the US.