Legal & General: investing over £2bn from pension funds in affordable housing over the next five years

Legal & General Group Plc April 8, 2022

Legal & General will invest over £2billion from pension funds in affordable housing over the next five years

The investments will provide over 10,000 new homes across the UK

Legal & General Retirement Institutional (“LGRI“) announcement today its plans to invest an additional £2billion of pension funds in affordable housing over the next five years, helping to create more than 10,000 new homes nationwide and working to levDeveloping the UK through Legal & General’s inclusive capitalism lens.

The investmentthrough Legal & General’s entirely owned subsidiary, Legal & General Affordable Homes (“LGAH”)will help address the huge shortage of affordable housing that currently exists 1.2 million households are currently on waiting lists for social housing in England. The funding will be used to support the growing demand for housing at both social and affordable rent, as well as to provide a subsidized route to home ownership through co-ownership.

The National Housing Federation and charity Crisis estimate that 145,000 new affordable homes need to be built each year to meet demand, while barely a third of that figure, or around 45,000 homes, have been delivered in 2020/21.

Legal & General and the UCL Institute of Health Equity recently launched The Health Equity Trade: TheGroundhog review for industry,which highlights the vital importance of quality housing and infrastructure for health and well-being, thereby significantly improving economic growth.

Andrew Kail, Managing Director, Legal & General Retirement Institutional (LGRI)

“The UK is suffering from a huge shortage of affordable housing. Today’s announcement shows how Legal &

General Retirement Institutional, by placing inclusive capitalism at the center of its investments, will help solve part of this problem.

Legal & General is committed to building a better society for all by investing in assets that will benefit both today’s society and future generations, while investing hardrned retirement savings and securing the pensions of thousands of policyholders.”

In 2020, LGRI made an initial funding commitment of £100 million for affordable housing. In 2021, a further £270 million has been committed to invest in 1,400 new affordable homes across the UK to be delivered by 2024.

Legal and general report,The power of pensionscouldbled in June 2020 found that pension money can be invested in socially useful assets, including housing, creating a virtuous circle in which pension funds generate demonstrable benefits that can help younger generations.

This announcement follows LGRIannouncement to target another £2.5bn of pension funds in Buildfor rent developments,create over 7,000 new homes over the next five years.

Ben Denton, Managing Director, Legal and General, Affordable Homes

This is a great example of how Legal & General is making a significant differencence to people’s lives and their communities by building new affordable homes and providing housing for those who need it most. We also strive to maximize the number of low-carbon homes we build and have committed that all new affordable homes we develop will be Net Zero Carbon by 2030.

There is still a massive need to provide more affordable housing to help the 1.2 million households on the social housing register.

LGAH recently released a white paper on affordable housing in partnership with the British Property Federation (“GMP”),which found that 145,000 more houses are needed each year to plug in affordable housing in England difference.

This will require additional funding estimated at around £34 billion. The white paper calls on the government, housing associations and institutional investors to allow increased delivery.

All Affordable Homes from Legal & General are created to high standards and strive to meet best in class affordable homes which are assessed against multiple quality criteria, including accessibility and sustainability and aim to achieve net zero carbon by 2030 by introducing air-source and geothermal heat pumps.

Notes to Editors

About Legal and General

Founded in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with over £1.4 trillion in assets under management*, a third of which are international. We also provide powerful asset origination capabilities. Together, these underpin our industry-leading pension and protection solutions: we are a leading international player in pension risk transfer, life insurance in the UK and US, and in occupational pensions and retirement income in the UK. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.

* As of December 31, 2021

About Legal and general Retirement Institutional

Legal & General Retirement Institutional (LGRI) works with Defined Benefit Trustees and Corporate Sponsors (PD) pension plans of all sizes to settle their pension obligations and secure member benefits, through a full range of redemptions, repurchases and other risk reduction solutions.

Our UK retirement annuity portfolio stands at over £89 billion as of December 31, 2021, of which over £28 billion is invested in direct investments that have positive social and environmental impacts, such as as clean energy and affordable housing.

Our Customer Services’ 12-the rolling Net Promoter Score (NPS) over a month is greater than +70, which is widely considered to be at a “world class” level.

About legal and general capital

LGC is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients to achieve better risk-adjusted returns for our shareholders. LGC has built its skills in a range of alternative sectors, including residential real estate; specialized commercial real estate; clean energy; alternative credit; and venture capital, all supported by long-term structural growth drivers, fill a financing gap and respond to a scarcity of supply underpinned by sustainable societal needs.

Its purpose is to invest the capital of the company for the benefit of the company. Invest in the real economymy and support the The Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.

Legal & General has invested over £30billion in leveling out regional economies, including through major UK-wide regeneration schemes, and recently pledged to allow all of its new homes to operate at net zero carbon emissions from 2030.

(As of December 31, 2021)

More information

Name: Margrit Williams

Role: Director of Public Relations and Communications

Division: Legal & General Retirement Institutional Tel: 07796696133

E-mail:[email protected]

Name: Daniel Henry

Role: Senior Account Executive Company: Hanover Communications Email:[email protected]