Global investor, Legal & General (L&G) has pledged £2 billion by 2030 to support the development of thousands of new social and affordable homes across the UK, aiming to tackle the country’s housing shortage and boost regional growth.
The funding, part of a broader effort to boost regional growth, is expected to deliver around 10,000 new social and affordable homes and support thousands of jobs in infrastructure and urban regeneration projects.
Drawn from L&G’s balance sheet and co-investments, the funding supports the government’s goal to boost housing supply and drive regional economic growth by directing long-term capital into local projects.
This commitment aligns with the UK government’s ambitious target to deliver 1.5 million new homes by 2029, a goal that is coming under increasing scrutiny ahead of tonight’s airing of the Panorama documentary, The Race to Build 1.5 Million Homes.
In the documentary, the new housing secretary, Steve Reed, says his job should be “on the line” if the target is not met.
The National Housing Federation (NHF), Home Builders Federation (HBF), and Savills have previously warned that the government could fall 500,000 homes short of its 1.5 million target due to a lack of support for social housing and first-time buyers.
It follows the announcement of Sterling 20, an investor-led partnership of 20 major UK pension providers – including L&G, Aviva, M&G, Phoenix Group, and Nest – that aims to unlock more than £25 billion in long-term investments for housing, infrastructure, and rural broadband.
Its formation builds on July’s Mansion House Accord, which saw 17 providers commit to invest at least five per cent of their main default funds in UK private markets.
L&G chief executive officer, António Simões emphasised the firm’s focus on generating both financial returns and social benefits.
“As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact,” he said.
“Our £2 billion commitment will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities, and driving both regional and national growth.”
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The announcement comes ahead of the first Regional Investment Summit in Birmingham, where Sterling 20 members will coordinate efforts to accelerate infrastructure development nationwide, aiming to leverage more than £3 trillion in assets to drive regional growth.
Andy Briggs, CEO, Phoenix Group, said: “Through the Sterling 20 we are helping to unlock billions in long-term investment that will support communities, build critical regional infrastructure, and fuel innovation across the UK.
“This is about putting our customers’ savings to work in ways that grow their pensions and grow the economy. This landmark initiative brings together the scale and strength of the UK’s pension and insurance sector to invest in Britain’s future.”
The investment also follows proposed changes to the Planning and Infrastructure Bill, a piece of UK legislation designed to streamline the planning process for housing and clean energy projects, which, if approved by year-end, could potentially unlock £2 billion and create thousands of jobs.
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