Housing association London & Quadrant is planning a major push into the private rented sector, and is looking for investors to support a £1 billion fund to support the growth. The group wants to double its current 2,000 homes a year output, in London and the south east.
L&Q is already partnering to achieve larger scale developments and has already worked with housebuilder Barratt on the Altitude development in east London. It is also working closely with Development Securities on residential developments including the Old Vinyl Factory site in Hayes, where a number of private rental flats are proposed. Currently, L&Q owns or manages around 70,000 homes across the south east, though many of these will be affordable housing only tenants on local authority housing need lists.
While many housing associations are looking at ways to expand their operations, few are yet active in the private rental market. However, a recent report suggested many are making substantial surpluses, thanks to rising rents, and therefore will be looking to reinvest those profits in further housing ventures.
A L&Q spokesman revealed to the Property Week publication: “We are currently piloting our PRS development with a fund of £250 million. We aim to increase our investment to £1 billion within the next three years. From year three onwards, a sixth of our total development output will be designated for PRS.”