The deal will see an estimated £24m created in savings for the council and will bring 250 homes and apartments back into use for families currently residing in emergency accommodation.
Legal & General has committed £21.6m to its innovative partnership with Croydon Council.
The deal will see an estimated £24m created in savings for the council and will bring 250 homes and apartments back into use for families currently residing in emergency accommodation.
This announcement increases Legal & General’s total investment to £66.2m.
The homes will be managed by Croydon Council’s housing team and leased on a 40-year term, after which they will belong to the council.
Rents will be set at Local Housing Allowance levels.
Pete Gladwell, head of public sector partnerships at Legal & General, said: “Our strengthening partnership with Croydon Council highlights our determination to innovate and tackle the UK’s chronic housing crisis.
“With this additional investment, we will be providing 250 homes and much-needed stability for some of the most vulnerable people in society.
“This is a great demonstration of our purpose to deliver inclusive capitalism, developing a structure which supports our long-term pension commitments whilst improving lives and helping to create further savings for the council to reinvest.”
Councillor Alison Butler, deputy leader of Croydon Council and Homes and Gateway Services cabinet member, added: “I am pleased by the investment of a further £21.6m into our partnership with Legal & General.
“There remains a strong demand for good-quality affordable homes in Croydon and this innovative scheme offers us better value for money than the more traditional loans available to councils.
“With this additional investment, we are now saving around £24.5m over the loan period, meaning we can assist even more people in the long term and provide the homes that local families need.”
