Legal & General plans to invest more than £2bn (€2.3bn) from pension funds in affordable housing in the UK over the next five years.
Legal & General’s Retirement Institutional (LGRI) said it plans to invest the additional capital to help create more than 10,000 new homes nationwide.
The investment – which is being made through the Legal & General Affordable Homes business – will help “address the affordable housing shortage” that currently exists in England, he said.
LGRI has made an initial funding commitment of £100m for affordable housing in 2020. Last year another £270m was committed to invest in 1,400 new affordable homes across the UK, to be delivered by 2024.
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 (45,000) was delivered in 2020/21 .
Andrew Kail, CEO of Legal & General Retirement Institutional, said: “The UK has a huge shortage of affordable housing. Today’s announcement demonstrates how Legal & General Retirement Institutional, by placing inclusive capitalism at the center of its investments, will help solve some of this problem.
“Legal & General is committed to building a better society for all by investing in useful and enduring assets that will benefit both today’s society and future generations, while investing hard-earned retirement savings and securing the pensions of thousands of affiliates.
Ben Denton, CEO of Legal & General Affordable Homes, said: “This is a great example of how Legal & General is making a meaningful difference in the lives of people and their communities by building new affordable homes. and providing housing for those who need it most.
“We are also working 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.”
As previously reported, LGRI also plans to invest a further £2.5 billion from pension funds in build-to-let projects in the UK over the next five years.
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