Sunday 26 January 2014 11:32 pm

Pru joins Legal and General in building spree

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THE PRUDENTIAL is financing the construction of 1,000 new homes to be built by housing associations, the insurer said over the weekend.

The scheme follows Legal and General’s announcement last week that it is willing to spend £5bn over the next decade building five new towns across the country.

And the plan comes as the Department for Communities and Local Government announced a programme to part-finance the building of 165,000 affordable homes over three years.

From today, housing associations, councils, and housebuilders will be able to bid for funds for construction between 2015 and 2018.

Any bidders under the scheme will have to bring in private funding.

The Department is expected to contribute up to £3.3bn over the course of the scheme.

“Our programme will support 165,000 jobs in construction, sustain thousands of small businesses and provide homes where future generations can live and raise families of their own,” said housing minister Kris Hopkins.

The Prudential’s scheme involves £156m of its cash and £120m of government funding, for 17 Welsh housing associations.

The insurer is one of the big players in the sector, which has together committed to invest £25bn in infrastructure projects.

“This pioneering partnership is a great example of private enterprise working with government to deliver jobs, much-needed affordable homes and community regeneration,” said the Prudential’s chief executive Tidjane Thiam.

“The deal is also a tangible sign of Prudential’s commitment to the long-term funding of the new housing and infrastructure we need to deliver strong, sustainable economic growth for the UK.”