Japan’s Nomura Real Estate Partners with Legal & General to Enter UK Housing Market

Introduction

This move shows global investors eye British homes. Nomura Real Estate of Japan and Legal & General plan to build over 1,000 rental properties in Britain. This deal marks Nomura’s first step in the UK rental field. It reflects a rise in international cash flow into UK housing, especially where rent demand outpaces supply.

Deal Overview

On March 25, 2025, Nomura Real Estate signed an agreement with Legal & General. The two firms will build more than 1,000 homes in the coming five years. They will first work on a south London site that can hold over 200 houses. UK renters need more homes as demand rises. The firms plan to use their joint skill to meet this need.

Bill Hughes, head of L&G’s private markets, said, "This is a very under-supplied market." He showed hope for the future. He said L&G expects to learn from Nomura’s skill in design and large-scale building work from Japan.

The UK Rental Market Landscape

Investors from large institutions are now turning to the UK rental market. Recent trends show a clear push to close the gap in rental home supply. Big US firms such as Blackstone and PGIM have spent much on the sector. In the UK, huge rental landlords are rare. The market now builds a firmer rental system with deals like this one between Nomura and L&G.

The partners will find and ready underused land in central London. L&G works to add more units to its list and to meet the needs of urban renters. Today, L&G runs 23 rental projects in 15 UK cities to serve growing city needs.

Strategic Significance

The pact with Nomura acts as a careful move for L&G. Not long ago, L&G sold its housebuilding arm, CALA, which built properties for sale. Now its focus shifts to rental dwellings. This new deal ties L&G even closer to Japanese investment, after past small joint efforts with Mitsubishi Estate and a recent unit sale to Meiji Yasuda.

Nomura Real Estate will add a large sum to the project, starting with hundreds of millions of pounds. Even if details of the cash flow are few, the plan shows both teams are set to help ease the housing gap in the UK.

Conclusion

Nomura Real Estate now joins the UK housing market with Legal & General as a sign of growing global ties in British property. The plan to build over 1,000 homes seeks to ease the shortage of rental dwellings. Merging Nomura’s building skill with L&G’s clear UK base may start a new era of rental growth. This move may draw more global investors to the strong potential in UK real estate.

For those who buy or invest in property, this deal shows that there is still room to expand in British housing. Watching cross-border partnerships like this may give you useful clues and new chances in the changing market.

Sources

• Reuters: Japan’s Nomura Real Estate strikes deal with L&G to enter UK housing market.
• Legal & General: Corporate Insights.
• Recent Market Trends (2023): The Guardian on UK Housing.

This article aims to keep you informed about key moves in the UK housing market, especially for those considering investment in rental homes or Houses in Multiple Occupation.