In a significant move to address the UK’s housing shortage, Lloyds Banking Group and Barratt Developments have joined forces with Homes England, the government’s housing agency. Their goal is to initiate large-scale housing projects, with each entity contributing an initial Β£50 million to establish the Made Partnership. This new venture will focus on major housing developments, encompassing brownfield sites and garden village-style communities.
Housing Minister Matthew Pennycook emphasized the government’s dedication to increasing housing supply and stimulating economic growth through this partnership. The Labour government has prioritized housing, aiming to deliver 1.5 million new homes within five yearsβan ambitious target unseen in decades.
This initiative aligns with the government’s ongoing efforts to expedite housing delivery, which include a task force to address stalled large-scale developments and a commission to identify suitable locations for new towns. Made Partnership itself has indicated its readiness to undertake projects of this magnitude, aiming to spearhead multiple large-scale residential developments ranging from 1,000 to over 10,000 homes.
David Thomas, Barratt’s CEO, highlighted the necessity of large-scale developments to achieve the goal of millions of new homes. He emphasized the role of the master developer in managing infrastructure and placemaking, essential for successful large-scale projects.
However, RBC analyst Anthony Codling cautioned that completing homes might not happen until 2028-29, underscoring the complexities of large-scale development.
This collaboration further solidifies Lloyds’ commitment to the housing sector, extending beyond its existing foray into private renting under the Citra Living brand. The bank is strategically diversifying its revenue streams and has plans to repurpose some of its properties for social housing.
