Hyde strikes deal with L&G to tackle ‘funding gulf’ over affordable housing delivery

Andy Hulme, chief executive of Hyde, said: “There’s a gulf between the funding available and the funding needed to deliver the affordable homes the country needs.

“Grant alone will not close it. The only way we can close this gap is by bringing pension and other responsible capital into the mix – and that is exactly what this innovative partnership delivers.” 

Jeremy Hunt, real estate partner at law firm Trowers & Hamlins, which advised on the deal, said the “transfer of portfolios of housing to institutionally backed registered providers represents an important way for housing associations to recapitalise their balance sheets”.

Hyde has committed to completing around 5,500 homes in the next five years. In its last full year, the group completed 602 homes, down from 630 the year before. 

L&G has said it wants to deliver 10,000 new social and affordable homes by 2030. 

Hyde and L&G have invested an undisclosed amount of initial funds in the partnership, but have said there is an “ambition for further joint investment”.

Asked by Social Housing how many homes the partnership is hoping to operate in the long term, the spokesperson said: “We have not disclosed a target on the number of homes to be operated.”

However, they added: “This is the beginning of a long-term partnership that will help deliver a significant pipeline of new, high-quality, environmentally sustainable homes for the future.”

L&G launched its affordable homes business in 2018.

Catherine Raynsford, managing director – stock acquisitions at L&G Affordable Homes, said: “This new partnership with Hyde marks an exciting milestone, combining our heritage and expertise with an innovative approach that aims to attract institutional investment and accelerate the delivery of much-needed affordable housing nationwide.”

Hyde and L&G are already connected, as the housing association’s management subsidiary, Pinnacle, looks after around 3,000 homes for the insurance giant’s affordable homes business.

Hyde owns and manages around 125,000 homes after acquiring Pinnacle in October 2024.

Hear from Catherine Raynsford at the Social Housing Finance Conference, taking place on 14 May in London. For more information and booking, click here.