Legal & General Affordable Homes will operate as a subsidiary of Legal & General Capital and aims to deliver 3,000 homes per year within the next four years.

Chief executive Nigel Wilson said the new division has been formed to tackle the historical “underinvestment” in the sector. It will look to become the leading private affordable housing provider in the UK and bridge the gap between the 1.3m households on UK waiting lists for affordable by increasing housing provision for the sector which currently averages 30,000 properties a year.