Legal & General (L&G) Retirement Institutional had announced plans to invest more than £2 billion from pension funds in affordable housing over the next five years.
The plans will see over 10,000 new homes created across the country and aim to ‘level up’ the UK through L&G’s inclusive capitalism goal.
The investment will be made through L&G’s wholly-owned subsidiary, L&G Affordable Homes, and aims to address the shortage of affordable housing in the UK.
L&G said there were currently 1.2 million households waiting for social housing in England.
The National Housing Federation and charity Crisis have estimated that 145,000 new affordable homes need to be built each year to meet demand, with around 45,000 delivered in 2020/21.
“The UK has a huge shortage of affordable housing,” commented Andrew Kail, managing director of L&G Retirement Institutional.
“Today’s announcement demonstrates how L&G Retirement Institutional, by placing inclusive capitalism at the center of its investments, will help solve some of this problem.
“L&G is committed to building a better society for all by investing in useful and sustainable 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.”
The investment follows L&G Retirement Institutional’s previous funding commitments to affordable housing, including £100m in 2020 and a further £270m in 2021.
L&G Affordable Homes Managing Director Ben Denton added: “This is a great example of how L&G is making a meaningful difference in the lives of people and their communities by building new affordable homes and providing to those who need it most.
“We are also working to maximize the number of low-carbon homes we build, and we are committed to having all new affordable homes we develop be 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.”