Barratt Developments PLC (LSE:BDEV) has joined forces with Lloyds Banking Group PLC (LSE:LLOY) and the Homes England government agency to create the MADE Partnership, which will focus on developing multiple large sites from 1,000 to more than 10,000 new homes.
MADE will act as master developer for multiple large-scale, residential-led developments that will include community facilities and multiple employment uses, a statement said.
Barratt, Lloyds and Home England, the government's housing and regeneration agency, are contributing equally to the project’s £150 million initial funding.
Housing and planning minister Matthew Pennycook called it a “landmark new partnership” that “will support our commitment to ramp up housing supply and boost economic growth by developing more large-scale, attractive and sustainable places across the country”.
The announcement comes as the new Labour government prepares to launch a major housebuilding spree.
Prime minister Keir Starmer has pledged to build 1.5 million new homes in the first five years of his premiership.
It will also provide a boost to Barratt, which was forced to slash its dividend recently to reflect a squeeze on earnings amid a strained housebuilding environment over the past year.
Lloyds Banking has also been moving into housing via its residential landlord arm, Citra Living, which has built up a portfolio of over 2,000 rental properties across the country via partnerships with housebuilders.
A strategic partnership was formed with Barratt in August 2021 that has seen Citra buy more than 1,500 homes from the developer.
“Through the MADE Partnership, we are creating a master developer which can manage the infrastructure and placemaking that is needed to deliver at scale, whilst consistently achieving the high quality and sustainability standards that Barratt is known for,” said Barrat’s chief executive David Thomas.
Lloyds CEO Charlie Nunn called it a "pioneering" partnership, which he said would enable "the largest-scale projects and place-based solutions to be achieved, and helping to deliver tens of thousands of new homes which are so urgently required".