Construction firm Laing O’Rourke has initiated a public land house-building venture in co-ordination with Legal & General Investment Management and Touchstone to support the UK’s housing market.
The partner firms aim to build 2,000 houses a year, which will be delivered to the local councils to assist with meeting residential targets.
This alliance is intended to offer a one stop shop for build-to-rent housing on local authority sites, offering integrated services such as investment, construction and management.
While the land will be leased by Legal & General, Laing O’Rourke’s capital will support house construction across a range of private rented and affordable tenures.
Local authorities will then be able to lease the homes from Legal & General, for management by Touchstone.
Councils will be given the option to buy back homes at a cost of £1 at the end of the extended lease period of up to 50 years.
Laing O’Rourke accommodation sector leader Stephen Trusler said: "The crisis in UK housing needs new delivery solutions if we are to start bridging the existing chasm between demand and supply.
"Our aim is for this alliance to make a significant contribution to solving that problem, creating new homes for private rental through innovative partnerships with Local Authorities up and down the country; that make a fundamental difference to people’s lives and aspirations."
Legal & General Property head of public sector partnerships Pete Gladwell said: "The housing shortage is one of the biggest challenges facing the UK, and local authorities are at the sharp end of the issue.
"What this alliance is trying to do is simple: make accessing quality private sector support as stress-free and financially beneficial as possible for local authorities."