Hyde Group and Legal & General have joined forces to create a new investment partnership aimed at boosting the delivery of affordable homes across the UK.
The joint venture brings together the housing association’s development expertise with the financial strength of one of the country’s leading institutional investors. It will launch with a seed portfolio of more than 1,000 homes, forming the foundation for a wider pipeline of new affordable housing.
The partnership will be jointly equity financed, with additional support from Legal & General’s annuity portfolio. This model enables long-term capital to be invested into housing, generating stable returns while supporting pension commitments and delivering essential infrastructure.
Both organisations say the collaboration is designed to help address the significant shortfall in affordable housing supply, with traditional funding mechanisms alone no longer sufficient to meet demand.
The deal forms part of Legal & General’s wider ambition to deliver 10,000 new social and affordable homes by 2030. Hyde Group is also progressing an extensive development programme, with plans to complete more than 5,500 homes over the next five years.
Andy Hulme, group chief executive of Hyde Group, said the partnership reflects a growing need to attract institutional investment into the housing sector to bridge the funding gap.
He explained that grant funding on its own cannot deliver the scale of housing required, and that bringing pension-backed capital into the sector is key to unlocking delivery at pace. Hyde’s role will include structuring investment, delivering new homes and managing communities, with profits reinvested into further affordable housing provision.
Catherine Raynsford, managing director for stock acquisitions at Legal & General Affordable Homes, described the agreement as an important step forward for the organisation’s housing strategy.
She highlighted Legal & General’s track record in delivering high-quality affordable homes since entering the sector in 2018, adding that the partnership with Hyde combines expertise with a model designed to attract further institutional backing.
The collaboration signals a broader shift in how affordable housing is funded and delivered in the UK, with long-term investment capital playing an increasingly central role.
As housing demand continues to outpace supply, partnerships of this kind are expected to become more common, helping to unlock development and deliver homes at scale across the country.
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