By continuing to use the site you agree to our Privacy & Cookies policy

Your browser seems to have cookies disabled. For the best experience of this website, please enable cookies in your browser.


Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.


Government floats £45bn pension-backed housing fund

The government has proposed doubling the amount of money local authority pension funds can invest in housing and infrastructure

Communities Secretary Eric Pickles has announced plans to allow council pension funds to invest up to 30 per cent of their assets in vital infrastructure such as housing.

Currently the limit is 15 per cent which is equivalent to £22.5 billion.

Pickles said: ‘Unlocking Town Hall pension pots so they can be used to invest in vital infrastructure projects is a common sense decision that will help this country complete on a global scale and get Britain building.

‘By lifting the restrictions controlling local pension investments councils could pump a further £22 billion directly into job creating infrastructure projects that will boost our economy.

‘This is potentially a huge development and investment opportunity we simply cannot afford to ignore that also allows us to maintain long-term value for money for the taxpayer.’

The policy announcement comes shortly after a major RIBA report claimed 300,000 homes could be completed each year without spending a penny of government money.

The RIBA report had advocated a more modest, £10 billion local housing development fund created by pooling 15 per cent of the largest local authorities’ pension fund assets.

RIBA chief executive Harry Rich said: ‘This kind of investment of local government pension fund assets in local housing was a key recommendations of the recent report by the  Future Homes Commission that the RIBA set up.  I am therefore delighted that the Government is following-through on this innovative idea.’

He added: ‘There is a huge opportunity for local authorities to become the drivers behind the next generation of new homes across the country by pooling parts of the largest pension funds into one superfund.  As the Future Homes Commission identified in their recent report,  this approach can only work if the homes that are built are well designed and in communities where people want to live and if the fund trustees can be sure of making a proper return on their investment.’


A consultation on the proposed policy will close on 18 December.

Subscribe to AJ for £3 per week

Subscribe today and receive 47 issues of the magazine, 12 issues of AJ Specification and full access to and the AJ Buildings Library

Are you a student?

Students can subscribe to the AJ for £8 per month or £1.60 per week! Click here to start receiving the most recommended magazine for architecture students


Have your say

You must sign in to make a comment.

Related Jobs

Sign in to see the latest jobs relevant to you!

The searchable digital buildings archive with drawings from more than 1,500 projects

AJ newsletters