L&Q set to create 20,000 new homes in the North West
L&Q to invest £4 billion to create 20,000 quality new homes and neighbourhoods in the North West through proposed acquisition of THT
- L&Q sees THT as a gateway to the North West and a key to delivering its ambitious plan for 100,000 new homes over the next 10 years to tackle the national housing crisis
- Transformational deal will unlock significant investment and growth in the number of social homes in the North West to meet local needs, including THT’s existing 9,000 social homes
- Creation of a North West Foundation and Academy, based on the L&Q model, will double social investment in the region from £2 million to £4 million a year
- A further £2m will be put aside to extend L&Q’s Home Standard to THT homes as part of the group’s £225m annual investment in its existing homes
L&Q and Trafford Housing Trust (THT) announced today that they are in talks, which will see THT become a wholly-owned subsidiary of L&Q. It is anticipated that the acquisition will complete in summer 2019, subject to due diligence, customer consultation and the development of a five-year business plan.
The acquisition of THT by L&Q will build on a highly successful joint venture partnership that has already seen 679 housing starts with a further 1,493 in the pipeline since it was launched in April 2017. This new agreement will unlock a further £4 billion of investment in the North West by combining the capabilities and resources of the two housing associations to create 20,000 new homes and strong communities over the next 10 years. At least half of these homes will be affordable.
Around £2 million will be put aside to improve the standard of THT’s existing homes, as they come up for re-let, in-line with L&Q’s Home Standard. This includes modernising, re-painting and fitting carpets. This is part of L&Q’s £225 million annual investment in existing homes.
L&Q and THT will work closely with local authorities in the North West to ensure that both new and existing homes meet local needs, including homes for the over 55s and for those with specialist needs.
Over time, there will be savings by removing duplication and increasing efficiencies. However, the acquisition is focused on investment and growth and there will not be any compulsory redundancies as a direct result of the acquisition.
While London and the South East will continue to be a major area of operation and growth, L&Q has been carefully expanding its geographical focus. Through this acquisition, L&Q will gain access to the North West through THT’s local knowledge, relationships and strong reputation for innovation and delivery. THT will benefit from the scale, financial strength and resilience of one of the largest and most successful charitable housing providers in the country, with unparalleled access to strategic land. THT’s existing management team will continue to be responsible for local service delivery, accountable to the THT Board.
A newly-created North West Foundation will invest in local communities to help the most vulnerable in society, including projects to tackle poverty and support people experiencing domestic violence, mental health and debt problems, as well as improving the lives of the region’s aging population.
The Foundation will also fund projects to help young people and the hard-to-employ back into work, as well as increasing skills amongst THT’s own workforce through an L&Q Academy in the North West, mirroring its successful work in London and the South East.
As part of the acquisition, THT CEO Matthew Gardiner, who has led the company since it was established 15 years ago, will step down and be succeeded by current Acting Chief Executive Larry Gold. Matthew has spent the past few months on secondment as Head of Ideation for L&Q Group, leading innovation projects, and this will become permanent. THT Chairman, Edna Robinson, will join L&Q’s Group Board to help shape future strategy.
Commenting on the announcement, L&Q Group Chief Executive David Montague said:
“L&Q has an ambitious plan to build 100,000 quality new homes over the next 10 years to tackle the national housing crisis. We see THT as a gateway to the North West, an area of outstanding growth that needs more high quality, affordable homes.
“We are excited by the opportunity to invest in the North West with a partner that shares our social purpose, values and ambition, has excellent local knowledge and a strong reputation for innovation and delivery.”
Larry Gold, Acting Chief Executive of THT, added:
“This is a unique creation that will be built on true partnership and the strength of our vision, and the people who will deliver it. As part of L&Q, we’ll create significant social impact in the North West at scale and pace and strive to find solutions to the national housing crisis.
“We will deliver an extensive programme of new development and regeneration projects, as well as improving homes and services for our existing customers.”
Notes to editors
- L&Q is one of the UK’s leading housing associations and developers, managing more than 90,000 homes across London and the South East
- We are committed to tackling the housing crisis and have an ambitious plan to enable the delivery of another 100,000 quality new homes over 10 years
- Half of our new homes will be genuinely affordable to people on average and lower incomes, with the other half available for private rent or sale, reflecting our belief that everyone should have a quality home they can afford
- We are a not-for-profit housing association and reinvest the money we make into building quality homes, creating successful communities and providing excellent services for residents
- As a charitable housing association our role goes beyond providing homes and housing services. We are a long-term partner in the neighbourhoods where we work. We hope to build aspiration, opportunity and confidence among residents through our £250m community foundation and our skills academy
- Our care and support subsidiary, L&Q Living, provides housing assistance for older people and those with support needs
- For further information please visit www.lqgroup.org.uk
About Trafford Housing Trust
- Trafford Housing Trust is a profit-for-purpose housing association established in 2005, following a large stock transfer from Trafford Council
- THT has 18,000 customers living in 9,000 homes for social and affordable rent in Trafford
- Laurus, the development arm of THT, has homes for Shared Ownership and open market sale
- THT has recently expanded its new build programme to build homes for rent and sale across Greater Manchester and the North West of England
- Trafford Housing Trust aims to invest £2 million a year into projects that unite communities, tackle poverty, provide mentoring and skills and do things to transform lives
- Trafford Housing Trust is part of the Greater Manchester Homes Partnership Social Investment Bond, which was set up to tackle homelessness in Greater Manchester
- THT has joint venture partnerships with the GMCA, Galliford Try, Wates and Wilmott Dixon
- 48% of homes built were ‘affordable’
- £63.9 million turnover
- £5.7m Invested in existing homes
- 84% Customer Satisfaction
- For further information please visit www.traffordhousingtrust.co.uk