Legal And General News Update: L&G Become Landlords
Legal And General, The Landlords
Legal and General News Update: L&G become landlords. The Insurance Company announces that they plan to enter the rental sector in the UK housing market.
The move has been prompted by what the head of L&G Nigel Wilson called an intergenerational injustice towards the youngest members of society who are unable to find jobs after running up huge amounts of student debt and are unable to get on the housing ladder and face a future of never being able to buy their own property.
In an attempt to redress the balance Legal and General intend to invest fifteen billion pounds in education, energy, transport and the housing market over the coming 10 years. Mr Wilson commented that there was no doubt that the rise in the price of housing would be welcome in some quarters but for many young people it was the last nail in the coffin of their property owning aspirations. He added that in order to achieve the required numbers of new homes being built there was no doubt that some land that is currently classified as Green Belt land would have to be used to accommodate the new housing stock.
Mr Wilson highlighted, as a potential stumbling block in the way of the new homes being built, the current planning legislations and he added that the planning process in the United Kingdom was probably the most difficult anywhere in the whole world.
Legal and General have already dipped their toe in the water by purchasing a forty six and a half per cent stake in the house builder Cala in March of this year. At the time of that purchase the company commented that it had been part of its strategy to identify and invest in socially helpful projects and that are in keeping with the Legal and General’s criteria both financially and strategically. Although Cala represent the buy to sell market L&G are also interested in having a stake in build to rent properties in the UK.
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Although Mr Wilson said that L&G were very optimistic about becoming part of the property business in the UK he said it was impossible to predict how big their involvement would be. This he said, depended on things like the environment surrounding planning applications and other factors that surrounded building. He did say however that measures were being put in place to ensure that Legal and General became major players in the build to rent sector.
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