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

Senior Product Support Analyst

Essex County Council
£33512.0000 - £39425.0000 per annum
Senior Product Support AnalystPermanent, Full Time£33,512 to £39,425 per annum Location
Recuriter: Essex County Council

Independent Reviewing Officer

Essex County Council
£46574.0000 - £56027.0000 per annum
Independent Reviewing OfficerPermanent, Full Time£48,205 to £57,988 per annumLocation
Recuriter: Essex County Council

Social Worker - Assessment & Intervention

Essex County Council
£37185.0000 - £50081.0000 per annum
Social Worker - Assessment & InterventionPermanent, Full Time£37,185 to £50,081 per annum Location
Recuriter: Essex County Council

Social Worker - Children and Families Hub

Essex County Council
£37185.0000 - £50081.0000 per annum
Social Worker - Children and Families HubPermanent, Full Time£37,185 to £50,081 per annumLocation
Recuriter: Essex County Council

Library Manager Service Development

North Yorkshire Council
£51,356 - £55,539
Are you passionate about the future of public libraries and the role they play at the heart of communities? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner