Insurance giant Legal & General has earmarked UK pension money to be spent on affordable housing for the first time, with £100 million of new financing secured.
The firm said long-term debt funding from its pension fund arm, Legal & General Retirement, will be invested into its affordable homes business launched in 2018.
Up until now it has typically only invested its own money generated from profits.
The company wants to create a portfolio of 3000 UK shared-ownership, social and affordable rental properties per year by 2023. It has a 3500-homes pipeline it can develop in areas such as Croydon, Wembley and Enfield.
L&G added that a further £175 million of loans have been agreed with external lenders.
Simon Century, head of affordable housing at Legal & General, said: “Waiting lists for affordable housing have never been busier, and London has colossal levels of unaffordability. We need to be more innovative in how we can deliver more homes.”
Nigel Wilson, L&G chief executive, pointed to the business being able to help recycle the UK’s “hard-earned savings and pensions to support those most in need in society”.