L&G has announced the launch of Legal & General Homes, a modular housing business, which aims to provide pre-fabricated houses to thousands of families through a new factory in the North of England.
Legal & General Homes has signed a long-term lease with Logicor on a 550,000 sq ft warehouse 15 miles east of Leeds, representing the largest modular homes construction factory in the world, according to L&G.
Initially employing 400 to 500 local people, it expects to deliver its first houses from the factory in June.
The homes will range from 20-storey apartment blocks to rows of terraced, semi-detached and detached houses.
The group says that the technology has "been proven right" across Europe, including countries such as Austria, Germany and Scandinavia where off-site manufacturing of housing is increasingly common place. Time spent building on site is expected to reduce by more than 70%, compared to traditional techniques, manufacturing sections in advance and delivering them to the site to be installed.
L&G recently announced the launch of a Build to Rent partnership with PGGM, through which it will invest £600m into building purpose built private rental housing across the UK, providing over 3,000 homes.
Tom Ground, Chief Executive of Legal & General Homes, commented: ”Legal & General Homes aims to deliver a new solution to the problems we face in the UK, addressing the shortage of suitable, affordable and sustainable housing by manufacturing higher quality, energy efficient, lower cost housing.”
Paul Stanworth, Managing Director of Legal & General Capital, said: “Sustainable, durable modern materials and proven technology will enable us to create high-quality homes meeting a wide range of housing needs and help solve the UK’s housing crisis. Modern modular housing in the UK has so far been restricted to the top end of the market: the scale of our Sherburn facility will enable many more people to benefit from new, environmentally-friendly construction techniques which have already become mainstream in Europe.”