In an effort to help combat the housing crisis in the UK, Lloyds Banking Group has committed to leveraging its property portfolio to turn unused office and data centre buildings into social housing.
The UK’s largest mortgage provider initiated a strategic review of property holdings during the 2020 lockdown, and is now prepared to contribute to a fresh housebuilding boom following the recent Labour party election victory.
The first phase of the project will start in Pudsey, West Yorkshire, where a former data and office space will be sold to a local housing group and turned into affordable housing. The deal stipulates the creation of 80 new homes, which will be rented at half the market rate to provide affordable housing options for local residents.
According to a recent report from Bloomberg, the UK housing crisis has been developing over the past five decades, where construction of new housing has failed to keep pace with population growth. The UK would need to build ‘the equivalent of another city the size of London’ to make up the housing deficit.
Banking Boss to Host Social Housing Forum
Chief Executive of Lloyds Banking Group, Charlie Nunn, will host an inaugural social housing forum in London, bringing together housing bosses and policymakers to discuss the urgent need for more affordable homes. The form aims to build momentum for the construction of 1 million social and affordable homes, in line with the new Labour Government’s pledge to build 1.5 million new homes over the next five years.
While Labour has not yet detailed how many of these homes will be available at social or affordable rates, Nunn is optimistic about the new Government’s commitment to addressing the housing crisis. He believes Labour’s dedication to this cause is clearer than the previous Government’s efforts, and he hopes to see meaningful changes that will unlock the necessary level of ambition for the UK’s future prosperity.
How many of the newly-constructed houses will be offered at affordable rates has not yet been released. However, Nunn is optimistic about the new Government’s commitment to the plan.
“Labour’s commitment to it is clearer than the last Government. We obviously did not see, in the last period of time, some of the changes that would be needed to really unlock the level of ambition that we think is needed for the UK to prosper going forward,” said Nunn as reported in The Guardian.
Last week, the UK’s new Deputy Prime Minister, Angela Rayner, said she plans to recall two planning decisions that have delayed data centre investments.
The Chancellor of the Exchequer, Rachel Reeves, said the Deputy Prime Minister, who has also been appointed as Secretary of State for Levelling Up, Housing and Communities, has decided to reopen and reassess planning appeals for data centre developments in Buckinghamshire and Hertfordshire.
