Social impact revealed: How L&G is deepening its approach to affordability and scaling up housing delivery
3 September 2026
The Good Economy, a leading independent impact advisory firm, has produced its fifth performance report for L&G’s Affordable Homes Division.
The 2025 Impact Report found L&G continues to perform strongly in delivering social impact and positive outcomes for residents and communities. It also maintained a healthy development pipeline, helping to play a significant role in affordable housing delivery across the country.
It was another successful year of growth, increasing the total number of homes to 8,684, including 6,694 operational homes and 1,990 more in a secured pipeline. With £1 billion of assets under management and £1.3 billion committed across its existing portfolio and future pipeline, the business continues to scale its impact at a time when demand for affordable housing remains acute.
Among its standout achievements is the organisation’s increased focus on social rent homes. During 2025, L&G added 822 new social rent properties, increasing the proportion of social rent homes in its portfolio from 10% to 18% – a significant step forward in targeting support towards lower-income households and those most in need of affordable housing.
Affordability continues to be a major strength. On average, L&G’s rental homes are rental homes are affordable to 77% of local households. Importantly, 84% of rented homes are affordable to households earning within the lowest 40% of local incomes. These are both improvements from the previous year and highlight L&G’s commitment to help residents achieve greater financial stability and provide access to a stable foundation to build fruitful lives. This is also reflected for Shared Ownership – with 65% of homes affordable for local households also representing significant progress from 2024.
Environmental performance is another area of success. An impressive 94% of homes are rated EPC B or above, outperforming the national average for new homes and helping residents benefit from lower energy costs while supporting the transition to a lower-carbon housing sector.
Shaun Holdcroft, Head of Affordable Homes at L&G, said:
“Since starting in 2018, our mission has remained the same: to deliver as many high-quality, genuinely affordable homes as possible and drive up standards in affordable housing. The Good Economy’s latest report is testament to us fulfilling that mission and highlights the real progress we are making in addressing England’s housing shortage while shaping positive outcomes for residents and the sector.
“We’re continuing to make strides and build on last year’s progress. In March 2026, we forged an innovative partnership with Hyde Group, which is already helping to deliver hundreds of new, affordable homes across the country. While we know there is more to do, the report’s findings demonstrate the value of our long-term investment approach and reinforce our ambition.
“Bolstered with the highest possible scores from the Regulator of Social Housing for governance, financial viability and consumer standards, we know we’re on the right track to provide more affordable homes, strengthen communities and help raise standards across the sector.”
Sarah Forster, co-Founder and CEO of The Good Economy said:
“This fifth annual impact report marks an important milestone in our work with L&G Affordable Homes and reflects how its approach to increasing the provision of high quality, affordable housing has continued to evolve as the business has grown.
L&G has now invested in over 8,600 new affordable homes across England. This year, we particularly welcome the increase in social rent homes, which now account for 18% of the portfolio up from 10% last year. We have also seen L&G continue to achieve relatively high levels of resident satisfaction, improve its service delivery model and strengthen its focus on supporting residents beyond the provision of an affordable home, with a more proactive approach to engagement, wellbeing and tenancy sustainment.
As the business continues to scale, its emerging partnerships with traditional housing associations offer a significant opportunity to bring new capital into the sector, increase the supply of affordable homes and support stronger outcomes for residents.”