Legal and General’s foray into self-delivered modular housing development has seen it accumulate £137m in losses since being set up back in 2016.
Latest accounts for the business reveal that losses last year reached £30.2m, with still no revenue being booked for the venture in 2020, although work started on its first two sites this financial year.
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 losses20202019201820172016Pre-tax loss-£30.2-£30.6m-£20.7m-£46.1m-£9.2m
From its factory in Sherburn-in-Elmet in Yorkshire, L&G Modular Homes has its sights on building 3,000 modular homes a year in 2024, bringing ‘rapid and disruptive change’ to house building.
In July this year, the business struck a deal with Peabody-owned Kent housing association to build 153 modular homes.
The deal to acquire a site in Broadstairs for affordable provider Town & Country Housing, brings L&G’s Modular Homes’ factory pipeline to 670 homes including other sites in Selby, Bristol and North Horsham.
L&G said it is aiming now to create up to 300 new jobs by the year-end at its production and logistics business near Leeds to meet the swelling housing pipeline.
The latest scheme, located on Poorhole Lane, will be funded by Homes England, and consists of a range of two, three and four bed houses.
L&G said its modular housing factory offered multi-skilled employment opportunities, including across design, finance, engineering, procurement, construction and production.