L&G modular homes losses exceed £100m

Aaron Morby 2 years ago
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Property investor Legal and General’s foray into self-delivered modular housing development has seen it accumulate £106m in losses since being set up back in 2016.

550,000 sq ft housing factory in Sherburn-in-Elmet, near Leeds
550,000 sq ft housing factory in Sherburn-in-Elmet, near Leeds

Latest accounts for the business reveal that losses last year reached £30.6m, with still no revenue being booked for the venture.

Legal and General Capital Investments continues to support the business as it seeks to invest heavily in plans to revolutionise the housing market with factory-built modular housing.

L&G Modular Homes losses
2019 2018 2017 2016
Pre-tax loss -£30.6m -£20.7m -£46.1m -£9.2m

In April this year, Legal & General Modular Homes gained planning consent for 154 houses at an eight acre site in Selby, North Yorkshire.

This is the first scheme where Legal & General will deliver a full development proposition from buying land, developing the product, achieving planning consent through to delivery.

The agreement is the first major deal since the modular specialist decided to reopen its Yorkshire factory following a month-long lockdown.

Thirty per cent of the properties will be affordable and the rest will be for sale on the open market. They include a mix of contemporary terraced houses and low-rise apartments.

Ultimately L&G Modular Homes aims to ramp up production at its 550,000 sq ft modular housing factory in Sherburn-in-Elmet, near Leeds.

It presently employs around 250 staff cover design and manufacturing engineering to plumbers but hopes to raise this over time as it builds up to produce 3,000 homes a year by 2024.

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