Legal & General acquires suburban BTR in Great Haddon

Legal & General announces it has acquired a suburban Build to Rent (SBTR) scheme in Great Haddon, Peterborough.

Peterborough Cathedral. Legal & General has acquired a new SBTR scheme in Great Haddon, Peterborough | BTR News
Peterborough Cathedral. Legal & General has acquired a new SBTR scheme in Great Haddon, Peterborough.

Launched at the end of 2020, Legal & General’s suburban Build to Rent (SBTR) arm is scaling a portfolio of large scale single family rental communities in suburban locations across the UK. Legal & General has now announces that it has acquired a new SBTR scheme in Great Haddon, Peterborough. Purchased for £25m, Great Haddon will deliver 117 new family rental homes – a mix of two, three and four bedroom houses which will be attractive to Legal & General’s target market.

As an investment market forecast to grow to in excess of £200bn, Legal & General aims to be the UK’s first choice SBTR platform creating much needed, high quality family homes in areas connected to schools, transport infrastructure and key amenities.

“Build to Rent as a sector has consistently demonstrated value to investors, delivering robust and defensive income streams, suitable for patient capital investment. This is clearly about more than strong investment prospects for us; it’s about providing high quality rental housing for families across the UK, as working practices and lifestyle demands continue to evolve. We are delighted to be developing our first scheme with Countryside to meet these aims and look forward to working with Countryside in future.”

David Reid, Managing Director, Legal & General Suburban Build to Rent

The Great Haddon development, which is being delivered by mixed-tenure developer Countryside, represents the first phase of a new expansion of southern Peterborough. The community will be bounded by existing woodland and new water features as well as new schools and community amenities to be delivered as part of the wide site.

In line with Legal & General’s wider ambitions for its SBTR projects, Great Haddon will be community focused and service-led. It will offer residents choice, security of tenure and flexibility. Legal & General SBTR developments will also be designed to reflect new ways of living post-Covid, such as incorporating home offices and offering access to more extensive outdoor space.

“As a mixed-tenure developer, providing quality homes that meet requirements for a wide range of different individuals is important to us. As well as offering options that help families get on the property ladder, SBTR homes such as those available at Great Haddon will combine great places to live in an attractive, family-friendly setting with high standards of management and service. We’re excited to be working with Legal & General and bringing this SBTR scheme to life.”  

Matt Bench, Chief Investment Officer, Countryside

Across all of Legal & General’s new SBTR developments, a robust ESG framework will be implemented to enhance and create viable, long-lasting communities. Alongside Legal & General’s other housing businesses, SBTR aims to be operationally carbon net zero from 2030.

As a Group, Legal & General has a strong track record within the Build to Rent sector. Launching its Build to Rent Fund in 2017, it now has over 5,500 homes in either operation or development across the UK’s major towns and cities. However, the SBTR sector has lacked the same concentration of investment, with less than 1% of the market having benefitted from patient capital compared to c. 6% for the urban sector. Recognising this untapped potential and the societal need for high quality family homes to rent, Legal & General is at the forefront of institutionalising the suburban rental sector.