A company has exchanged contracts that will see it spend nearly £500 million developing almost 1000 new homes near Wandsworth Town station.

The scheme, which was acquired by the Legal & General BTR Fund, PGGM and Legal & General Capital already has full planning permission.

That consent includes 35 per cent affordable housing (all of which for rent) and will also include a new entrance to the platforms of the station.

Dan Batterton, head of build-to-rent at LGIM Real Assets said it will be a "flagship build-to-rent development in the UK."

“This latest acquisition is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive socioeconomic impact.

"The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK."

According to real estate company Savills, demand for rental properties has increased 34 per cent over the past five years.

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In the latest London Plan, it read that the unmet housing need in Wandsworth has now reached a shortfall of 2,310 new homes per year.

Paul Miller, MD principal investing at Legal & General Capital, said: “As renting continues to become a tenure of choice in the UK, the delivery of high density, high quality developments with vibrant communities is becoming more and more important.

"To do this, we need to deliver schemes which offer well connected housing options, which are carefully integrated into the public realm, maximising our existing infrastructure and supporting economic growth.

"This latest development in Wandsworth, our largest BTR acquisition to date, is a perfect example, offering 1,000 new rental homes alongside improving the station infrastructure and offering commercial real estate space to support local businesses."