William Eichler 14 May 2025

Local government pension scheme could fund affordable housing

Local government pension scheme could fund affordable housing image
‘[T]he LGPS can become a pivotal source of patient capital, contributing significantly to alleviating the housing crisis,' says Localis head of research, Joe Fyans. © fasphotographic / Shutterstock.com.

The £392bn local government pension scheme should be harnessed to address the UK’s underinvestment in affordable and social housing, think tank says.

A new report from Localis argues the Government should set up investment vehicles to use the assets held across the Local Government Pension Scheme (LGPS) to support the delivery of social housing.

It says encouraging institutional investment in social housing is in line with the Government's ongoing reforms to the LGPS, including the push for ‘megafund’ pools, and Labour’s wider focus on housing delivery.

Localis head of research, Joe Fyans, said: ‘[T]he LGPS can become a pivotal source of patient capital, contributing significantly to alleviating the housing crisis, supporting local economic development, and fostering national economic growth.’

He added: ‘The challenge lies in ensuring the right incentives and strategic tools are in place for all involved parties to deliver meaningful and impactful outcomes.’

Steve Simkins, public services leader at Isio, added: ‘The current LGPS surplus presents a unique and unexpected opportunity to drive affordable housing growth at a crucial time for the UK.

‘The scenario of some council revenue savings being directed to removing barriers to housing development, as the LGPS becomes more adept at local investment, presents a solution which can benefit our society as a whole.’

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director for Estate Strategy and Development  

Derbyshire County Council
£71,202 - £77,495 per annum
We are seeking an ambitious and strategic leader to join our senior management team as Assistant Director for Estate Strategy & Development. Matlock, Derbyshire
Recuriter: Derbyshire County Council

ESCA Development Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
ESCA Development AssistantFixed Term, Full Time£25,959 to £27,613 per annumLocation
Recuriter: Essex County Council

Closed Landfill Site Operative

Essex County Council
£25959.00 - £28621.00 per annum
Closed Landfill Site OperativeFixed Term, Full Time£25,959 up to £28,621 per annum Location
Recuriter: Essex County Council

Apprentice Admin Assistant

Durham County Council
£8 per hour
Apprentice Admin Assistant Apprentice £8 per hour. Temporary contract for approx. 18 months Full Time, Term Time Only, Required to start September 202 Durham
Recuriter: Durham County Council

Rights of Way Officer

Durham County Council
£30,024 - £33,699
An exciting and challenging opportunity has arisen within the Council’s Access and Rights of Way Team for the position of Rights of Way Officer.    WH Durham
Recuriter: Durham County Council
Linkedin Banner