Information for people who invest or wish to invest in L&Q.

About L&Q

We focus on a long term social mission to create places where people want to live.

This means delivering homes that people can afford across a mix of tenures, including general needs rent, intermediate market rent, affordable home ownership, market rent and outright sale.

We have a planned works programme to ensure our residents live in homes that are safe, warm and environmentally friendly. In addition, we carry out reactive works to keep homes in good repair.

We also invest in people and communities. The L&Q Foundation's annual budget is £7 million, and helps our residents to improve their lives.

Taking responsibility for our own future

The reduction in government grant levels means that we must seek funds from elsewhere if we are to continue providing new housing. L&Q is a social enterprise and our business model is based on taking measured commercial risk and driving efficiencies in the engine room to increase capacity and deliver our social mission.

Credit ratings

L&Q is rated:

  • A3 with a stable outlook by Moody's Investors Service
  • A+ with a negative outlook by Standard & Poors

Corporate bonds

We currently have six bonds.

1998 bond

L&Q raised £130 million in bond finance through a dedicated financing vehicle and wholly-owned subsidiary called Quadrant Housing Finance.

The issue is a fixed rate bond paying a semi-annual coupon of 7.93% and was launched with BNP Paribas as the bookrunner. The debt is repayable in 2033.

2010 bond

In January 2010, L&Q raised £300 million through a debut bond issue priced at Gilts plus a spread of 1.15%. The Aa2/AA- rated 30-year bullet repayment deal was three and a half times over-subscribed within an hour of hitting the markets, attracting subscriptions worth £1 billion.

The issue is a fixed rate bond paying a semi-annual coupon of 5.5% and was launched in conjunction with Barclays Capital, Royal Bank of Scotland and Goldman Sachs as joint bookrunners. The debt is repayable in 2040.

2012 bond

In March 2012, L&Q raised £250 million via a bond issue priced at Gilts plus a spread of 1.57%. The Aa2/AA- rated 21.5-year secured bond was 2.4 times over-subscribed.

The issue is a fixed rate bond paying a semi-annual coupon of 4.625% and was launched with Barclays, Lloyds Banking Group and Royal Bank of Scotland Group as the lead managers of the sale, DTZ acting as valuer and Eversheds and Devonshires Solicitors acting as legal advisors. The debt is repayable in 2033.

2015 bond

In October 2015, L&Q priced a £250 million 34-year bond at Gilts +135 basis points. The cash price is 3.839% with a semi-annual coupon payable at 3.75%.

The joint bookrunners on the deal were Barclays, Lloyds and RBS. The debt is repayable in 2049.

2016 bond

In April 2016, L&Q raised £300 million via a bond issue priced at Gilts plus a spread of 1.07%.

The S&P AA and Moody’s A1 rated 10-year secured bond was 3.3 times over-subscribed, with the order book reaching £1 billion. With a coupon payable at 2.625%, this transaction demonstrates the continued strong support from high quality investors for L&Q, and the wider housing association sector. The deal was placed by Goldman Sachs International, HSBC and Santander as joint bookrunners. Jones Lang LaSalle conducted the valuation and L&Q appointed Clarke Willmott LLP to act as its counsel.

2017 bond

In July 2017 L&Q successfully completed a £500 million bond issuance. This was conducted by way of a dual-tranche offering of Sterling Secured Notes in the form of £250 million 12-year and £250 million 40-year bonds.

The 12-year priced at Gilts +100bps and the 40-year at Gilts +105bps, representing the lowest bond yields and coupons ever achieved by a UK housing association for these tenors. The effective re-offer yields, inclusive of hedging activity conducted by L&Q, were 2.20% for the 12-year and 2.70% for the 40-year. The coupons payable are 2.25% on the 12-year and 2.75% on the 40-year.

This is L&Q’s largest bond issuance to date and the proceeds will be used for general corporate purposes and refinancing of existing debt. This transaction also achieves L&Q’s stated objective of rebalancing the Group’s mix of bank and bond financing, fixed and floating rate debt and extends L&Q’s average debt maturity profile with the 40-year marking the longest point on the issuer’s GBP curve.

Quarterly trading updates

Our quarterly trading updates, which are published on the London Stock Exchange Regulatory News Service (RNS) are available here.

Governance and regulation

L&Q works to respond to local needs. Our board, executive team and staff are open about how we make decisions and how we oversee the process.

We are regulated by the Regulator of Social Housing. The regulator expects us to meet certain standards and it publishes its assessment of how well we comply. It has awarded us the highest ratings for governance and viability. We put residents at the heart of our decision making and reserve one place on our Group Board for a resident. We also have a Resident Board and seven Neighbourhood Committees for residents who would like to take on greater responsibility in shaping and improving our services.

See more information about our decision making and governance.


L&Q faces a number of risks in our operating environment which we regularly monitor. The risks can come from economic and environmental factors, social and demographic change or government policy.

Housing market risks

Rising land costs in London could make it more difficult for us to secure affordable opportunities and maintain our development pipeline. However, the income from our outright sale and market rent homes reduce the impact of this. Where appropriate, we also share costs and risk through joint ventures.

Operating environment risks

With government funding for social housing no longer the norm, our approach of developing homes for outright sale and market rent has been attracting interest from politicians and civil servants.

Given the changes in funding for providers, our regulator, the Regulator of Social Housing, is looking at how best to protect social housing assets owned by charitable housing associations.

Welfare reform risks

Over 3,500 of our residents have been affected by what is commonly referred to as the bedroom tax. This has meant that their housing benefit no longer fully covers their rent. Three-quarters of affected residents have lost an average of £16 a week in benefit, while the rest have lost an average of £30 a week. This has had a knock-on effect on our levels of rent arrears.

The benefit cap was introduced later and has had an impact on fewer residents around 500 people to date. However, over time, as rents rise, the numbers will increase.

In addition to the work we do to support residents in financial difficulty, we have also increased funding for the L&Q Foundation so that we can help even more residents into training and employment.

See also