L&Q, London’s largest housing provider, has increased its development pipeline from 8,000 to 10,300 homes after delivering a £95m surplus in its last financial year.
The housing association completed 1,620 homes last year and started work on another 1,384.
The group has focused efforts on improving efficiency and taking a more commercial approach.
Of the £95m surplus accumulated, £60m will be reinvested in new homes, £25m will be used to improve existing stock, and £10m will be invested in L&Q’s move into the market rented sector.
L&Q also secured £150m of private finance in the past year via an Aa2/AA-rated, 21.5-year bond issue priced at 4.625%.
Waqar Ahmed, L&Q’s group director of finance, said: “L&Q has responded to the extremely difficult economic environment by driving efficiencies and taking measured commercial risks to deliver our social mission.
“We are acutely aware that there is a chronic shortage of good-quality, affordable housing across London and the South East and the surplus we have generated will help us to increase our development pipeline.”
jack.sidders@estatesgazette.com
