A financial firm has invested £44.6 million in a project to provide 167 for families on Croydon's housing waiting list in partnership with the Council.

Legal & General will lease the properties to the council on a 40-year-term, after which they will belong to the authority.

Rents will be set at Local Housing Allowance (LHA) levels, offering a more affordable alternative to the thousands of families in Croydon in temporary accommodation.

Councillor Alison Butler, Croydon Council’s cabinet member for Homes and Gateway Services, said: “The council set up Croydon Affordable Homes so hundreds of local families can get

good-quality homes with secure tenancies, and Legal & General’s investment will save us around £20m in loan costs that means we can assist even more families in the long term.

“At a time when the Government is squeezing how much it funds local authorities, this innovative partnership offers us better value for money than more traditional loans available to councils, and I

hope this encourages other councils and financial institutions to follow suit."

The partnership is expected to result in £20 million savings for the council.

Legal & General’s investment represents a first for the sector and a new model that could be rolled out across other London Boroughs and UK local authorities.

Pete Gladwell, head of public sector partnerships at L&G, said: “Alongside launching our new affordable housing business last year, this investment highlights our determination to innovate within the sector and to work together to address the UK’s chronic housing crisis.”

"The 167 homes are mainly two and three-bed flats and houses, plus a four-bed house and a five-bed house.

"These will be for Croydon families previously in temporary accommodation and will be run by Croydon Affordable Tenures, part of Croydon Affordable Housing, a local housing charity set up by the council."