Japan’s Nomura Real Estate Partners with Legal & General to Enter UK Housing Market
LONDON, March 25, 2025 – A major change is set off in the UK rental housing field. Japan’s property maker Nomura Real Estate joins forces with Legal & General to build more than 1,000 homes. Their aim is to ease the housing gap in the UK. This first move into the UK rental market by Nomura follows a rise in foreign funds. Big U.S. names like Blackstone and PGIM also step in with their own money.
Growing Demand in the UK Property Market
The UK rental market now shows a clear gap. Demand for homes rises and supply stays low. Investors, including many institutions, take note of this gap. L&G’s Bill Hughes adds, "This market is very short on supply." The project draws on Nomura’s skill in building fast and many homes. Countries such as Germany and the United States have seen big landlords work at a quick pace in similar situations.
Initial Development Plans
The project starts at a site in south London where more than 200 homes will be built. In five years, over 1,000 houses will be built on many sites. Early work will focus on brownfield areas and less used plots. This plan shows L&G’s care for urban renewal and city life. Nomura will use millions of pounds as the primary fund source while L&G provides the rest. Exact numbers remain private, yet the money shows strong trust in the UK’s long-term housing value.
Expanding L&G’s Footprint in the Rental Sector
Legal & General, a well-known name in the UK home market, seeks more growth in its rental business. They run 23 projects now in 15 UK cities. The work with Nomura adds a new part to L&G’s mix and grows its work link to Japan. Their focus on renting homes shows that they see the market as a solid new asset. Working with a skilled builder like Nomura is key to scaling up and meeting housing needs.
Conclusion
The joint work between Nomura Real Estate and Legal & General takes a step to ease the housing gap in the UK. As the need for rental homes grows, more foreign money may come in, with skilled builders able to build many houses at once. Investors, especially those looking at House in Multiple Occupation (HMO), may find this change to mark a new era in the UK home market. The plan here shows a ready answer to meet today’s housing needs, building strong chances for both local and foreign investors in the shifting property field.
For further reading on the current trends in property investments, especially in rental domains, please visit HM Land Registry, Rightmove, and UK Government’s Housing Strategy.
Citations:
- ET RealEstate. (2025). Japan’s Nomura Real Estate join hands with L&G to enter UK housing market.
- Hughes, B. (2025). Remarks on the UK rental market.
- UK Government. Housing Strategy. Available at: UK Government Housing Strategy.
- HM Land Registry. (2023). Access the latest property insights and statistics.
- Rightmove. (2023). Property market trends and updates.
