The Greater Manchester Pension Fund (GMPF) has committed £100 million to a new investment vehicle developed and managed by Legal & General (L&G) to address the critical need for affordable housing across North West England. This partnership marks a significant step in tackling the region’s housing shortage, with the fund aimed at delivering high-quality, sustainable affordable homes.
The regional vehicle is an extension of L&G’s flagship Affordable Housing Fund, launched in July 2024, which seeks to develop affordable housing on a national scale. Tailored specifically for the Northern Local Government Pension Scheme (LGPS) – of which GMPF is a member – the fund will focus on deploying capital for housing development in the North West.
With over 1.3 million people on social housing waiting lists in the UK, including 207,000 in the North West alone, the initiative is seen as a crucial contribution to addressing the growing housing demand in the region. By building affordable homes, the fund aims to make a meaningful impact on improving housing supply for those in need.
As the largest LGPS fund and the 11th biggest defined benefit pension fund in the UK, GMPF manages over £22 billion in assets, supporting more than 375,000 pensions and paying out over £750 million in benefits annually. The fund serves employees from Greater Manchester’s ten local authorities, as well as organizations such as the National Probation Service, academy schools, and housing associations.
This investment reflects the increasing role of institutional capital in unlocking new housing developments across the UK. Pension funds like GMPF are increasingly investing in the sector, attracted by secure, inflation-linked returns and the opportunity to generate positive social impact within local communities. The fund aligns with the UK Government’s push to collaborate with the private sector in increasing the supply of affordable homes.
The Legal & General Affordable Housing team (LGAH), which will manage the development and operation of these homes, already has a proven track record, with £1 billion invested in affordable housing and over 8,000 homes either in development or operational. This strong pipeline of new homes is expected to make a significant contribution to meeting regional housing needs.
Councillor Eleanor Willis, Chair of GMPF, emphasized the urgency of the housing crisis, particularly in the North West, noting the record number of homeless children and the growing waiting lists for social housing. “This fund represents a vital step in addressing these challenges and in providing affordable homes for hardworking families, while also ensuring strong, low-risk returns to secure the pensions of our members,” she said.
Ali Farrell, Fund Manager at L&G Asset Management, highlighted the importance of public-private sector collaboration in addressing the housing crisis. “This fund is a great example of partnership working, aiming to increase investment into affordable housing and improve its quality, availability, and choice across North West England.”
This £100 million investment is expected to play a key role in the ongoing effort to build more affordable homes and tackle the housing affordability issues facing many communities in the region.
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