Hundreds of homeless families on housing waiting lists in Croydon are set to be given homes courtesy of a new investment.

With waiting lists for affordable homes reaching 1.1 million in England, and over 2,000 families requiring Temporary Accommodation in Croydon alone, Legal & General has pledged an additional £21.6 million to its innovative partnership with Croydon Council.

This partnership is creating around £24m in savings for the council and will bring 250 houses and apartments back into use for families currently residing in emergency accommodation. This funding brings Legal & General's total investment to £66.2m.

Legal & General's investment, which requires no Government affordable housing grant and does not rely upon Section 106 contributions, represents a first for the sector and an innovative new model that could be rolled out across other London Boroughs and UK local authorities. The homes will be managed by Croydon Council's housing team and leased on a 40-year term, after which they will belong to the council. Rents will be set at Local Housing Allowance ('LHA') levels.

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Pete Gladwell, Head of Public Sector Partnerships at Legal & General said: "Our strengthening partnership with Croydon Council highlights our determination to innovate and tackle the UK's chronic housing crisis. With this additional investment, we will be providing 250 homes and much-needed stability for some of the most vulnerable people in society. This is a great demonstration of our purpose to deliver inclusive capitalism, developing a structure which supports our long term pension commitments whilst improving lives and helping to create further savings for the council to reinvest."

Councillor Alison Butler, Croydon Council's deputy leader and cabinet member for Homes and Gateway Services, added: "I am pleased by the investment of a further £21.6 million into our partnership with Legal & General. There remains a strong demand for good-quality affordable homes in Croydon and this innovative scheme offers us better value for money than the more traditional loans available to councils. With this additional investment, we are now saving around £24.5m over the loan period, meaning we can assist even more people in the long term and provide the homes that local families need."

(CM/JG)