Legal & General launches suburban build to rent business

Legal & General Capital has launched a new suburban build to rent (SBTR) business, which will develop ‘single family’ homes across the country.

The new business work with housebuilders and undertake a direct delivery programme to bring forward over 1,000 homes each year from 2024.

Legal & General launched its Build to Rent Fund in 2017 and now has over 5,000 homes in operation or development across the UK’s major towns and cities.

The new business is headed up by Simon Century, who has led the investment and scale up of a number of major housing businesses, such as Legal & General Affordable Homes.

He will be supported by David Reid, who will act as managing director of the new business, having joined Legal & General from Rowan Asset Management in January 2020.

The wider SBTR team is now being established, seeking talent from a diverse range of backgrounds including investment, operational and residential development sectors.

‘Build to rent as a sector has consistently demonstrated value to investors, delivering robust and defensive income streams, suitable for patient capital investment,’ said Mr Reid.

‘It has shown significant resilience throughout the current crisis with strong rental collection and occupancy rates. With working practises and demands changing rapidly, this is an appropriate time to broaden Legal & General’s BTR investment, into the suburban single family housing market.

‘This is not only about strong investment prospects; it’s about providing high quality rental housing options for the growing number of families across the UK. Our size and commitment to the housing market across tenures, means we’re in a strong position to lead the way in this nascent sector, delivering well-managed, service-led communities which provide a reliable and positive alternative to home ownership,’ he added.

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