Legal & General plans to invest over 拢2bn (鈧�2.3bn) of pension money into affordable UK homes over the next five years.
Legal & General鈥檚 Retirement Institutional (LGRI) business said it is planning to invest the additional capital to help create more than 10,000 new homes nationwide.
The investment 鈥� which is being made through the Legal & General Affordable Homes business 鈥� will help to 鈥漷ackle the shortage of affordable housing鈥� that currently exists in England, it said.
LGRI made a first 拢100m funding commitment to affordable homes in 2020. Last year a further 拢270m was committed to investing 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 every year to meet demand whilst barely a third of that figure (45,000) were delivered in 2020/21.
Andrew Kail, Legal & General Retirement Institutional CEO, said: 鈥淭he UK has a huge shortage of affordable homes. Today鈥檚 announcement demonstrates how Legal & General Retirement Institutional, by putting inclusive capitalism at the centre of its investment focus, will help to address some of this problem.
鈥淟egal & General is committed to building a better society for all by investing in useful and sustainable assets that will benefit both today鈥檚 society and future generations, whilst investing hard-earned pension savings and securing the pensions of thousands of scheme members.鈥�
Ben Denton, Legal & General Affordable Homes CEO, said: 鈥淭his is a great example of how Legal & General is making a significant difference to people鈥檚 lives and their communities by building new affordable homes and providing housing for those most in need.
鈥淲e are also working to maximise the number of low carbon homes we build and we have committed that all new affordable homes we develop will be Net Zero Carbon by 2030.
鈥淭here is still a massive need to deliver more affordable housing to help the 1.2 million households on the social housing register.鈥�
As previously reported, LGRI is also planning to invest a further 拢2.5bn of pension money into UK build-to-rent projects over the next five years.
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