Legal & General to deliver 2,750 Multi-Tenure Homes in Horsham
07 February 2019
Legal & General Capital (Legal & General) has acquired control of a 500 plus acre multi-tenure development site in Horsham, West Sussex as part of its ambition to tackle the UK’s housing crisis by scaling up overall housing delivery and providing homes for all ages, tenures and social groups.
Regularly voted as one of the best places to live, Horsham has excellent road and public transport links to London. The project offers a development scale rarely available, in an area identified by the Local Authority as having the potential to meet the significant local demand for homes and jobs. With consent attained to provide 2,750 new homes and 500,000 sq ft of commercial space, the site represents one of the largest residential planning permissions in the South East of England, supporting the creation of around 4,000 jobs, four new schools and associated local infrastructure.
Alongside homes for the open market, the scheme can deliver Build To Rent, Later Living accommodation and Affordable Housing units, bringing together the full spectrum of Legal & General’s housing capabilities and demonstrating the diversity of its model within the residential sector.
Legal & General’s move into large-scale Master Development comes on the back of a number of major Government initiatives to promote the delivery of housing at scale to address the UK’s housing crisis. This includes NPPF2, the £2.3bn Housing Infrastructure Fund for Local Authorities and the £3bn Home Building Fund enabling accelerated scheme delivery. The need to take a multi-tenure approach to housing development was also identified as critical to accelerating overall build out rates and also creating compelling and enduring communities in the recent Letwin Review.
The site, a northern extension of Horsham, has been purchased from Liberty Property Trust who recently obtained outline planning consent for the development, which will be developed over three principle phases. CBRE acted in the sale for Liberty.
Kerrigan Procter, CEO of Legal & General Capital, said: “England has a shortfall of four million homes and the affordability gap for buyers and renters is at an historic high. We need to stop measuring the housing gap and start to close it. This acquisition in Horsham is an exceptionally exciting opportunity for Legal & General to deliver a genuinely multi-tenure community, utilising our patient capital and in-house expertise to bring forward a significant pipeline of housing for all ages, tenures and social groups.
“As a business, we have a core commitment to create sustainable communities with good employment opportunities, high-quality and varied housing and easy access to an efficient and comprehensive public transport system, whilst reducing our environmental impact. Legal & General is unique in being able to deliver such a varied range of housing due to the diversity of its capital streams which can provide a hedge against current house price volatility. This strategic extension of Horsham will represent a blueprint that we can roll out across the UK, working in close partnership with local councils and the public sector to create places where people can live, work and prosper.”
James Lidgate, Director of Housing, Legal & General Capital commented: “This site represents the first step for Legal & General to expand its current Strategic Land capabilities into Master Development. Against the backdrop of the UK’s chronic housing shortage, our move into this sector is a milestone for both the business and house building more widely, meeting the Government’s objective to enable and accelerate delivery of large scale sites to tackle this persistent issue. Master Developing is a particularly underserved market area and Legal & General is well placed to utilise its 20 years’ experience in all aspects of residential property and bring a new approach to the residential development. By leveraging its long-term patient capital to provide a strong multi-tenure pipeline, Legal & General in a unique position deliver a site of this scale across a number of building phases to include not only build to sell homes but also long-term options such as Build To Rent and affordable housing which are less exposed to current market fluctuations.”
Andrew Blevins, Managing Director of Liberty’s UK development and investment activities said: “We are delighted that having secured the outline planning consent for this huge and exciting project we have been able to identify such an accomplished multi-disciplinary development and investment company for the future delivery of much needed housing in the South East of England.
Ray Dawe, Leader of Horsham District Council said: “It is excellent news for Horsham that Legal & General, a major British company, has taken over the North Horsham development from Liberty Property Trust. At a time when there is considerable national political and economic uncertainty, this investment by Legal & General shows huge confidence in our District and in the combination of commercial and residential use on this site. We very much look forward to working with them and bringing forward the new jobs and homes that this development offers us.”