Affordable Housing Strategy Grows to £280 Million

Legal & General’s Affordable Housing Strategy Grows to £280 Million Following GMPF Investment

Legal & General (L&G) has announced a significant expansion of its affordable housing strategy, securing an additional £150 million in commitments, bringing the total to £280 million. This development follows the recent launch of the Legal & General Affordable Housing Fund in July.

Key Details:

1. New Investment:
   • Total Strategy Commitment: £280 million
   • New Capital Secured: £150 million
   • Major Contributor: Greater Manchester Pension Fund (GMPF) with a commitment of £120 million
2. Partnership Background:
   • L&G and GMPF have collaborated for over 20 years.
   • The announcement builds on their joint investments, such as in Bruntwood SciTech, a specialist property provider for the UK’s science and tech sectors.
3. Strategic Importance:
   • This strategy aligns with the UK Government’s prioritisation of housing.
   • It underscores the role of institutional capital in accelerating the delivery of affordable homes.

Impact and Goals:

• Target Areas:
  • The strategy will focus on investing in well-designed, purpose-built social rent, affordable rent, and shared ownership housing.
  • It aims to address the acute need and demand in various regions across England.
• Partnership and Collaboration:
  • L&G intends to work closely with councils and other providers, especially in response to recent and forthcoming policy announcements.
• Addressing Housing Shortages:
  • With approximately 1.3 million households on local authority waiting lists in England, this initiative is a critical step towards alleviating the housing crisis.

About GMPF:

• GMPF is the largest Local Government Pension Scheme (LGPS) fund and the eleventh largest defined benefit pension fund in the UK.
• It manages pensions for over 375,000 members, disbursing over £750 million in benefits annually.
• Beneficiaries include employees of the ten local authorities in Greater Manchester, the National Probation Service, academy schools, and housing associations.

Conclusion:

The expansion of L&G’s affordable housing strategy, supported significantly by GMPF, highlights the potential for public-private partnerships to drive substantial progress in addressing the UK’s housing shortages. The strategy’s focus on various affordable housing models aims to meet the diverse needs of households on waiting lists, contributing to the broader goal of housing security and economic stability.

For further details, refer to the original announcement linked here.