Legal & General Homes is to set up six more housing factories across the country to accelerate the expansion of its modular housing construction business.
It is expanding the business in order to meet pent-up demand underpinned by the UK’s housing crisis.
The company is looking for bases of 500,000 to 1m sq ft in which it will build components for new homes, and its requirement is an additional boon for the already buoyant big box logistics market. The factories will likely be operational within four years, but the timeframe is flexible dependent upon demand for the end product.
The modular construction arm will provide product for both Legal & General’s build-to-rent initiative as well as other developers that may wish to order from it. L&G Homes manufactures a variety of housing types including blocks of flats and terraced, semi-detached and detached houses.
Its first factory will be in Sherburn in Elmet, Yorkshire, which is a 555,000 sq ft warehouse owned by Logicor on which it has taken on a 10- year lease. It will be operational just six months after signing the lease in February.
In January L&G launched a £600m fund alongside Dutch pension fund PGGM to develop the business. It aims to build in the region of 7,500 homes a year. The government’s target is to build 250,000 homes a year in England, but current output stands at only 130,000.
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