(Commonwealth) _ Barratt Developments and Lloyds Banking Group have launched a significant £150 million joint venture with the UK government’s housing and regeneration body, Homes England, marking a major step towards addressing the UK’s housing crisis. This collaboration, known as the MADE Partnership, stands out as a long-term initiative that aims to capitalize on Labour’s plans to build 1.5 million new homes, setting the stage for a housing boom over the next five years. The MADE Partnership, which derives its name from “master developer,” is a landmark venture in the UK housing sector. Barratt, the country’s largest housebuilder, Lloyds, the leading mortgage provider, and Homes England will all hold equal equity stakes in the partnership. The initiative will focus on overseeing the development of large-scale housing projects, which will include town expansions, new garden village-style communities, and the revitalization of brownfield sites. These developments will vary in size, ranging from 1,000 to 100,000 homes, and will be accompanied by essential community infrastructure.
Homes England emphasized that the partnership brings together the “finance, tools, expertise, and partners required” to deliver attractive and well-planned communities where people will want to live and work. The partnership aims to create cohesive, sustainable developments that provide both homes and employment opportunities, ensuring long-term stewardship of the communities it builds. Although the announcement did not specify a formal housebuilding target, a spokesperson for MADE indicated that the first development project would be revealed within the next month. The venture is expected to last for at least 20 years, demonstrating its long-term commitment to addressing housing shortages across the UK.
This joint venture comes as part of the UK government’s broader strategy to meet its ambitious target of building 1.5 million new homes over the next five years. The government has reintroduced mandatory housing targets, alongside a range of measures aimed at clearing bureaucratic obstacles that have slowed housing development. The housing and planning minister, Matthew Pennycook, acknowledged that the inefficiencies in the current development system have delayed the construction of tens of thousands of homes in recent years. He stressed the importance of partnerships like MADE to help streamline the planning process and boost housebuilding efforts.
Pennycook highlighted the importance of the new initiative, stating that it would play a key role in increasing housing supply and supporting economic growth. He added that the MADE Partnership would not only focus on building homes but also on creating large-scale, sustainable communities with the necessary infrastructure, jobs, and public services to support thriving neighborhoods. As the master developer, MADE will be responsible for managing all aspects of these large projects. This includes overseeing the planning process, implementing primary and community infrastructure, and ensuring the long-term sustainability of the developments. The venture’s holistic approach aims to create well-planned, attractive communities that prioritize quality of life and environmental sustainability.
Barratt, which recently welcomed Labour’s proposed planning reforms, believes that the policy changes could significantly boost construction activity across the industry. With the backing of the UK government, Barratt and other housebuilders are keen to capitalize on the anticipated housing boom. The partnership is expected to provide a much-needed boost to the UK housing market, where the chronic shortage of homes has contributed to near-record house prices. Lloyds Banking Group’s CEO, Charlie Nunn, expressed enthusiasm about the partnership, calling it a “cross-sector collaboration” that operates on an unprecedented scale. Lloyds has been expanding its presence in the housing sector in recent years. In 2021, it launched Citra Living, its private rental arm, to diversify its income streams beyond traditional lending.
Two months before the MADE announcement, Lloyds expanded Citra to offer affordable rental homes at 80% of market rates, making it the first UK bank to enter the affordable housing market. As demand for affordable housing continues to grow, the MADE Partnership is poised to play a crucial role in addressing the UK’s housing needs, while also providing a stable source of income for developers and investors. The collaboration between Barratt, Lloyds, and Homes England signals a new era of large-scale housing development, driven by both private and public sector expertise.
