GMPF pumps £120m into L&G’s affordable homes crusade

L&G has now secured £280m to meet the UK’s “acute demand” for discounted homes since embarking on the strategy in 2018.

The Greater Manchester Pension Fund, the largest Local Government Pension Scheme in the UK, has committed £120m to L&G Affordable Homes as the latter looks to ramp up delivery buoyed by the new government’s pro-housing agenda.

Laura Mason, chief executive of L&G’s private Markets asset management division, said: “Today’s announcement demonstrates the important role pensions capital can play in investing in tangible assets that we believe can benefit the real economy while seeking to deliver positive societal outcomes.

“With acute demand for affordable housing across the UK and with government signalling the delivery of more affordable homes as a top priority, the public and private sector need to work together to drive change, and institutional investment has a pivotal part to play.”

L&G aims to invest in the affordable housing sector long-term in a bid to make a dent in the UK’s housing waiting list, which has more than 1.3m households on it.

GMPF’s investment could be good news for Rochdale Boroughwide Housing, which is working with L&G Affordable Homes on a plan to revamp the Seven Sisters apartment scheme.

“I know the depth of the housing crisis in which we find ourselves as a nation,” said Cllr Gerald Cooney, chair of GMPF and leader of Tameside Council.

“That’s why we are proud to be the cornerstone of this investment with longstanding investment partner Legal & General and support the government’s plan to provide much-needed affordable homes for hardworking families whilst aiming to deliver strong low-risk returns to pay the pensions of our hardworking members.”

L&G and GMPF have been long-time collaborators. Last year, GMPF became the third partner of Bruntwood SciTech alongside L&G and Bruntwood, investing £150m into the life sciences development venture.