Legal & General unveils £5bn plans to build up to five new towns

Out-Law News | 21 Jan 2014 | 3:23 pm |

Insurer Legal & General will spend £5 billion building five new towns in Britain in the next 10 years, chief executive Nigel Wilson has told The Guardian.

"If we can bring communities with us and agree planning, we’d like to help build several new towns across the country. We’re already developing towns within cities, in partnership with enlightened local authorities and boroughs," he said.

New towns have recently been on the political agenda. Labour Party shadow housing minister Emma Reynolds has said that a Labour government would build five new towns in its first five years in office. This would equate to 200,000 new homes per year. The plans would seek to ease the estimated shortage of one million homes by 2022 and would be built in areas where there is the greatest housing need.

Legal & General said house building was the key to keeping prices in check and it was keen to invest directly in infrastructure. In December, it invested £169m in infrastructure assets including a chain of care homes and a planned new hospital.