Legal & General has pledged to build 1,000 rental homes per year through its housing arm, L&G Affordable Homes.
The insurance giant plans to deliver 10,000 homes per year, including more than 3,000 for sale and up to 3,000 affordable and modular homes.
L&G Affordable Homes posted an operating profit of £461 million in 2021, up from £275 million in 2020.
Simon Century, managing director of housing at L&G Capital, said: “2021 was a strong year for our housing businesses and our portfolio grew substantially, reflecting the sustained long-term demand for housing in the UK.
“We agreed a number of new significant partnerships to deliver more homes, such as with NatWest Group Pension Fund, and by bringing in pension money to invest in affordable housing through our retirement arm. We also began our journey to net zero, announcing our first operationally emission-free schemes.
“As a business, we have the unique access to long-term capital, expertise and commitment to continue to scale up this platform over the coming years, and are now well underway to meet our ambition to deliver 10,000 multi-tenure homes per year. Affordable housing continues to be an important part of this mix, and in 2021 we increased our secured pipeline to over 7,000 homes as we continue to tackle the growing affordability crisis.”
The insurer signed a partnership agreement with house builder Lovell last week to deliver 3,000 new affordable homes across the country in the next five years.
It also plans to deliver 5,200 build-to-rent homes, as well as 5,100 later living homes with NatWest Group Pension Fund.
The company has pledged to make its new homes carbon free from 2030.