Hyde and L&G launch partnership to deliver more affordable homes

Hyde is joining forces with L&G – a major UK insurer, pension scheme manager and affordable housing leader that has invested more than £1bn through its L&G Affordable Homes business. The deal is a blueprint for how institutional capital can be invested to help fund social and affordable housing.

The 50/50 partnership is launching with a seed portfolio of over 1,000 homes – encompassing social rented and shared ownership homes – with the ambition for further joint investment. The homes will be acquired by two existing For-Profit Registered Providers (FPRPs) which are jointly owned by Hyde Group and L&G (Halesworth Limited and Lanecroft Homes Limited).

The partnership, which will be jointly equity financed by Hyde and L&G, demonstrates how pension capital and institutionally-owned registered providers can work together with housing associations, alongside public investment, to deliver additional affordable homes – generating stable, inflation-linked returns for pension savers while delivering homes the country urgently needs.

Andy Hulme, Group Chief Executive of the Hyde Group, commented:

“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.”

Through the partnership, housing management services will be provided by the Hyde Group, including using Pinnacle Group’s platform. Hyde acquired Pinnacle Group in October 2024, creating a national housing platform that develops, manages and services affordable homes at scale across all four nations of the UK.

Pinnacle, which manages over 70,000 homes, already manages homes on behalf of L&G Affordable Homes under a ten-year framework agreement, providing tenancy management, building compliance, repairs and maintenance across a portfolio of c.3,000 affordable rent and shared ownership homes, with a further pipeline of over 500. That established working relationship provides the operational foundation for this partnership from day one.

L&G Affordable Homes will leverage its successful track record within the sector, which includes building a portfolio of over 9,000 affordable homes, to act as strategic asset manager to the partnership with assistance from Pinnacle Investments (which joined the Hyde Group in August 2025).

The new homes will be delivered to the highest energy performance standards, in line with Hyde’s approach that all new homes it builds will reach a minimum of EPC high band B by 2027, and EPC band A by 2030, and L&G’s longstanding commitment that all new homes will be Net Zero in operation by 2030.

This is the beginning of a long-term partnership that will deliver a significant pipeline of new, high-quality environmentally sustainable homes for the future. The partnership helps accelerate L&G’s ambitions to deliver 10,000 new social and affordable homes by 2030, and Hyde’s commitment to complete over 5,500 homes in the next five years.

The partnership will also have the ability to invest in homes requiring green retrofit. This strategy could accelerate the improvement of customers’ homes, reduce energy bills, improve quality of life, and deliver positive environmental impact.

Catherine Raynsford, Managing Director – stock acquisitions, L&G Affordable Homes, 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, CEO of Institutional Retirement at L&G, commented:

“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.”