May 12 British insurer Aviva Plc could
buy thousands of homes in London and the southeast of England to
use as rented properties in a deal with social housing provider
A2Dominion, the Financial Times reported on Sunday, citing
people familiar with the situation.
The two companies, which are in advanced negotiations, plan
to launch a special purpose vehicle that would build a mix of
social and open market rented houses, the FT said on its
Insurers and pension funds are poised to spend 7 billion
pounds ($11 billion) on rental homes in Britain in a bet that a
shortage of housing and mortgages produces a generation of
renters rather than owners.
Larger rival Prudential Plc's said last month it
would buy more than 500 private rental units from Berkeley Group
for 105.4 million pounds.
A2Dominion is one of Britain's largest social housing
providers, owning 34,000 houses in and around London, according
to the FT.