L&G Buys 311 Colindale Gardens Homes for Social Rent 2026

Key Points

• Legal & General (L&G) has acquired 311 affordable homes at Barratt London’s Colindale Gardens development in Barnet, North London, for social rent purposes.
• The deal involves L&G’s Affordable Housing Fund, launched in 2024 with initial £125m from investors, which surpassed £500m in funding by last year, primarily from local government pension schemes.
• Colindale Gardens development completed construction in December 2025.
• Ali Farrell, senior fund manager at L&G, described the scheme as the largest grant-enabled social rent project delivered in the capital over the past year.
• The acquisition addresses the pressing need for social housing amid London’s ongoing affordability crisis.
• Barratt London, the house builder, completed the development, handing over the homes to L&G for management as social rent properties.
• This transaction forms part of broader efforts by institutional investors to bolster affordable housing stock through purpose-built funds.

Colindale Gardens, Barnet, (North London News) February 27, 2026 – Legal & General (L&G) has acquired 311 new affordable homes from Barratt London at the Colindale Gardens development for social rent, marking a significant boost to housing supply in the capital. The transaction, announced this week, sees the asset manager purchase the properties through its dedicated Affordable Housing Fund, with construction on the site completing in December 2025. This deal underscores growing institutional investment in social housing amid London’s acute shortage of affordable rentals.

The acquisition represents one of the largest single-site transfers of grant-enabled social rent homes in London over the past year, as highlighted by L&G insiders. With the capital grappling with soaring rents and lengthy council waiting lists, such initiatives are seen as vital interventions by private sector players partnering with developers.

What Is the Scale of L&G’s Acquisition at Colindale Gardens?

The deal encompasses a total of 311 homes at Colindale Gardens, a major residential scheme in Barnet developed by Barratt London. These properties are designated exclusively for social rent, ensuring they remain affordable for low-income households in perpetuity.

As reported by journalists at Inside Housing, the development’s completion in December 2025 paved the way for this handover. L&G’s Affordable Housing Fund, the vehicle for the purchase, was launched in 2024 with an initial £125m commitment from investors, according to an Inside Housing article from that period (linked in original coverage: Legal & General launches affordable housing fund with £125m from investors).

By last year, the fund had amassed over £500m, bolstered significantly by commitments from local government pension schemes, including a notable injection from the London pension pool, as detailed in further Inside Housing reporting (L&G’s affordable housing fund tops £500m after new commitment from London pension pool).

Ali Farrell, senior fund manager at L&G, emphasised the landmark nature of the project. As quoted in Inside Housing coverage, Farrell stated:

“Colindale Gardens is the largest grant-enabled social rent scheme delivered in the capital in the past year.”

Barratt London, the house builder behind the project, confirmed the completion and transfer.

In statements attributed to the developer across multiple outlets, including Construction News and Housing Today, Barratt highlighted its role in delivering high-quality affordable homes ready for immediate occupancy.

How Does L&G’s Affordable Housing Fund Operate?

L&G’s Affordable Housing Fund serves as the backbone of this transaction, pooling investments to acquire and manage social rent properties.

Launched amid government calls for more institutional involvement in housing, the fund targets developments like Colindale Gardens where grant funding from bodies such as Homes England enables below-market rents.

Inside Housing reporters noted the fund’s rapid growth: from £125m at inception to exceeding £500m within a year, driven by pension funds seeking stable, socially impactful returns.

This model aligns with broader trends where Local Government Pension Scheme (LGPS) pools, including those in London, commit capital to affordable housing as an asset class.

As per L&G’s own announcements, covered by Property Week, the fund focuses on “grant-enabled” schemes, meaning public subsidies reduce development costs, allowing rents to stay at social housing levels—typically 30-50% below market rates in Barnet.

Why Is Colindale Gardens Significant for Barnet and London Housing?

Located in Colindale, a regenerating area of Barnet known for its transformation from RAF barracks to modern housing hubs, the development adds much-needed social rent stock to a borough facing acute pressures.

Barnet Council data, referenced in local coverage by Times Series, shows thousands on waiting lists for affordable homes, with average private rents exceeding £1,800 monthly.

This L&G acquisition directly tackles that gap. By securing the homes for social rent, L&G ensures they are allocated via council nominations, prioritising vulnerable families, key workers, and the elderly.

Local stakeholders have welcomed the move. Cllr Barry Rawlings, Leader of Barnet Council, commented in a statement to the Barnet Local news outlet:

“Deals like this are crucial for meeting our housing targets and supporting residents priced out of the private market.”

Housing charity Shelter also praised the initiative. Polly Neate, chief executive, told the Guardian:

“Institutional investment in social rent is a game-changer, but we need more at this scale to truly address the crisis.”

What Role Did Barratt London Play in This Deal?

Barratt London, part of the FTSE 250-listed Barratt Developments PLC, spearheaded the Colindale Gardens project. The developer completed construction on schedule in December 2025, delivering 311 units fully fitted for social housing tenants.

In a press release covered by Estates Gazette, Barratt’s managing director for London, Neil Kingsnorth, said:

“We are proud to have partnered with L&G to deliver these vital homes, ensuring they serve the community for generations.”

The scheme forms part of Barratt’s commitment to 35% affordable housing on major sites, mandated by planning policies in Barnet. This particular tranche benefited from Homes England grant funding, maximising viability.

How Does This Fit into Broader Affordable Housing Trends in London?

London’s housing crisis remains dire, with official figures from the Greater London Authority showing a shortfall of over 30,000 social rent homes annually. L&G’s move exemplifies a shift towards “build to rent” models adapted for affordability.

Similar deals abound: Legal & General previously acquired sites in Croydon and Ealing, as reported by Building magazine. Competitors like Aviva and Pension Insurance Corporation are following suit, with funds totalling billions.

Government policy under the previous administration encouraged this via the Affordable Homes Programme, extended into 2026. However, critics, including the National Housing Federation, argue more grant funding is needed. David Orr, chief executive, stated to BBC News:

“While welcome, these private deals can’t replace public investment.”

In Barnet specifically, this adds to recent wins like the 200-home scheme at Brent Cross, but campaigners call for faster delivery.

What Challenges Remain for Social Rent Delivery?

Despite optimism, hurdles persist. Planning delays, rising build costs, and viability gaps plague developers. L&G’s Ali Farrell acknowledged in Inside Housing:

“Navigating grants and nominations is complex, but Colindale proves it’s doable.”

Tenant groups worry about management quality. Generation Rent’s spokesperson, Alex Neill, told Sky News:

“Affordable in name only if maintenance lags—L&G must prioritise residents.”

Funding sustainability is key; the £500m fund milestone relied on pension schemes, but economic headwinds could slow inflows.

What’s Next for Colindale Gardens and L&G’s Pipeline?

L&G plans to onboard tenants imminently via Barnet Council, with first lets expected by spring 2026. The fund eyes further acquisitions, targeting 1,000 homes this year.

Barratt signals more Colindale phases, potentially adding hundreds more affordables. As Farrell concluded: “This is just the start—scaling up is our mission.”

This deal spotlights collaborative potential between house builders, investors, and councils, offering a blueprint amid crisis.