Landsec to pump £2bn into new house building drive

The property large is getting ready to begin on website from late 2026 throughout a trio of main residential-led initiatives that can ship greater than 6,000 houses.

At Finchley Highway in north London, enabling works and demolition have already been accomplished for the primary part of a consented 1,800-home scheme. Detailed planning is in place for the primary 600 houses, with a variation resolution anticipated later this 12 months.

Landsec’s first main city housing scheme in London on the O2 centre strip website in Finchley

In Manchester, Landsec has restructured its settlement with JV companions on the Mayfield website to unlock the potential for round 1,700 houses. A call on detailed plans for the primary 879 models can also be anticipated within the second half of 2025.

The third key website is in Lewisham, south-east London, the place a masterplan protecting as much as 2,800 houses – together with scholar and co-living lodging – is awaiting planning sign-off.

Landsec goals to recycle £3bn of capital out of places of work and non-core property to fund the residential push and an additional £1bn of retail acquisitions.

Chief government Mark Allan mentioned: “Our capital allocation choices from listed below are about making certain that the expansion outlook for our portfolio in 3-5 years’ time is as optimistic as it’s for our present portfolio right now.

“That’s the reason we have now set out a transparent plan to extend funding in main retail by an additional £1bn and set up a £2bn+ residential platform by 2030, to be funded by rotating £3bn of capital out of places of work.”

The agency expects gross yields on housing schemes of round 6.5%, with internet yields of 4.8–5.5%.

In the meantime, Landsec has dedicated £600m to top-tier retail property together with Liverpool ONE and Bluewater over the previous 12 months and is focusing on one other £1bn of funding in prime procuring locations the place yields are at present hitting 7–8%.