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L&G formulating plans to enter house building market

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Legal & General is formulating plans to start building homes on land it owns to help address the UK’s housing shortage.

Speaking at the L&G Mortgage Club annual awards last week, group executive director of protection and annuities John Pollock said the group hopes to be celebrating its mortgage club’s 21st birthday in three years’ time “with a real key to our first real front door”.

It is thought the land L&G owns could support a few thousand new properties.

An L&G spokeswoman declined to comment further.

In March, L&G agreed a deal to acquire a joint 46.5 per cent stake in national housebuilder Cala Group with private equity group Patron Capital Partners from Lloyds Banking Group, with L&G paying £65m for its share.

L&G has been involved in deals to provide finance to housing associations through its various investment funds and has financed the building of student accommodation.

Your Mortgage Decisions director Dominik Lipnicki says: “We have a massive shortage of houses being built and anyone looking to build even a few houses must be welcome.
“There must be other firms with similar financial backing as L&G. Property is still an awesome investment.”

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