One of the s largest social landlords is set to launch a 50,000-home building drive without any government grant, in the most ambitious development programme the sector has ever seen.
According to Inside Housing:
L&Q’s board approved plans late last night to more than triple its current 15,000-home pipeline, making it the largest developer in the sector.
The plans would see it invest £12bn in new housing over 10 years – more than doubling five years of government investment in the Affordable Homes Programme.
The 71,000-home landlord plans to double annual completions from 2,500-homes per year to 5,000, with half built for sub-market rent and low-cost home ownership.
This volume of annual completions would make it the fifth largest housebuilder of any kind, according to the Home Builders Federation.
David Montague, chief executive of L&Q, said: ‘Over the course of the last year, we have reflected on the course we were taking and decided we can push L&Q harder. We believe we can get more out of the business without placing assets at risk.
‘None of these homes will be funded by grant. If grant comes along on the right terms, we will increase the pipeline further.’
It came a day after Inside Housing launched Housing Benefits, a campaign to set out the case for what the housing association sector can offer a new government.
Kathleen Kelly, assistant director of policy and research at the National Housing Federation, said: ‘L&Q’s proposal is just one example of the huge ambition and ability of housing associations to get building the homes we desperately need.’
Half of the homes will be rental, with two-thirds of these set at a ‘genuinely affordable rent’ and the remainder for market rent. The other half will be for sale, with a third low-cost homeownership, and the remainder sold at market rates.
Mr Montague said the plans would withstand falls in property prices. L&Q, which recorded a surplus of £174m in 2013/14, is planning to enter into strategic partnerships with local authorities to help build the homes.