L&G and Hyde launch for-profit partnership with 1,000-home stock transfer

The 1,000-home stock transfer is seen as the first tranche of a new, long-term joint venture between the housing association and asset manager to build new homes and invest in existing homes requiring green retrofitting.

Under the new joint venture, titled Halesworth Lanecroft Partners Holdco, L&G will receive income from the homes for its pension savers while Hyde, which owns or manages 125,000 homes, will recycle the profits of the sale into building new homes and investing in its existing homes.

The partnership will be jointly equity financed by Hyde and L&G and will be supported through L&G’s annuity portfolio. New homes will be delivered to high energy performance standards, in line with Hyde’s approach to build new homes to a minimum rating of Energy Performance Certificate Band B by 2027 and A by 2030.

Through the partnership, housing management services will be provided by the Hyde Group, including its Pinnacle Group platform. Hyde acquired Pinnacle in 2024. It develops, manages and services affordable homes across the UK, including on behalf of for-profit providers such as L&G.

L&G Affordable Homes, which already has a portfolio of 9,000 affordable homes, will act as strategic asset manager to the partnership, with assistance from Pinnacle Investments, an asset manager which joined Hyde Group in 2025.

The partnership will have the ability to invest in homes requiring green retrofitting, the organisations said.

L&G aims to deliver 10,000 new social and affordable homes by 2030, while Hyde is due to complete over 5,500 homes in the next five years.

Andy Hulme, chief executive of Hyde Group, said: “There’s a gulf between the funding available and the funding needed to deliver the affordable homes the country needs. Grant alone will not close it. 

“The only way we can close this gap is by bringing pension and other responsible capital into the mix – and that is exactly what this innovative partnership delivers.

“Hyde offers institutional investors a complete end-to-end service, from investment structuring through to managing homes and the community around them, with every penny of commercial profit reinvested in building more affordable homes and improving existing homes.

“With L&G’s long-term capital and our national platform, we can deliver more homes, faster.”

In 2024, L&G hired Catherine Raynsford from Hyde to lead on acquiring occupied homes from housing associations.

Ms Raynsford said: “Since establishing our affordable housing business in 2018, L&G has built a strong track record as a trusted leader in delivering high-quality, affordable homes across the UK.

“This new partnership with Hyde marks an exciting milestone, combining our heritage and expertise with an innovative approach that aims to attract institutional investment and accelerate the delivery of much-needed affordable housing nationwide.”

Gareth Mee, chief executive of institutional retirement at L&G, said: “The UK needs nearly a million affordable homes, and L&G is committed to driving the investment and action needed to meet this challenge.

“As a long-term investor in the UK economy, we have a track-record of deploying pensions capital into resilient, productive assets across the country, as reflected by our £2bn regional growth commitment.

“This innovative partnership will accelerate the delivery of new affordable homes nationwide, delivering strong, predictable returns to match our pension commitments with long-term investment that makes a tangible impact on local communities.”

Hyde Group was advised by law firm Gowling WLG on the partnership with L&G.

In an interview with Inside Housing last year, Ms Raynsford discussed the “inherently sensible” logic of bringing long-term pension capital into affordable housing and how it could usher in “the next wave of stock transfers”.