L&G partnership model to boost affordable housing in the UK

Legal & General (L&G) has unveiled a new "Partnership Registered Provider" (Partnership RP) model designed to generate an additional £9 bn (€10.6 bn) annually for affordable housing.

Family homes UK, suburban estate - L&G

This model offers a scalable solution where Housing Associations and institutional investors create joint ventures. The objective is to recapitalise the social housing sector, attract long-term investment, and significantly boost the delivery of affordable housing across England without increasing the taxpayer burden.

Under the Partnership RP model, a Housing Association sells existing homes to the joint venture. The funds from these sales are then reinvested into constructing new affordable homes and enhancing the quality of existing properties. Importantly, all homes remain within the regulated social housing sector, preserving current rents and resident protections, while improving housing standards.

This model provides an option for Housing Associations with suitable housing stock and growth aspirations, as well as for institutional investors looking for stable, inflation-linked returns. By standardizing this approach, more capital from pension funds and insurers can be directed into the sector, helping Housing Associations improve their financial health, enhance housing for residents, and increase the supply of affordable homes.

There are approximately 2.9 million homes owned by Housing Associations in England. L&G's analysis indicates that for every five homes transferred into a Partnership RP, the model can facilitate the delivery of at least one additional affordable home, beyond current production, and at no extra cost to the UK Exchequer.

Widespread adoption of this model could result in the delivery of up to 800,000 new affordable homes within a decade, without requiring an expansion of government grant programs. Achieving this volume of homes through traditional methods would necessitate over £2 bn (€2.36 bn) in additional annual government funding.

António Simões, Group CEO, L&G, said: “Our new partnership model with Housing Associations is designed to unlock investment at scale — accelerating the delivery of affordable homes across the country. If adopted widely, this approach could mobilise over £9 bn (€10.6 bn) of net new investment every year and support the delivery of more than 80,000 affordable homes annually, all without adding pressure to the public purse.”

Andy Hulme, Group chief executive of the Hyde Group, commented: “This country needs a growing and vibrant affordable housing sector so we can provide high-quality homes that people can afford.”