The Greater Manchester Pension Fund (GMPF) has invested £100m into an affordable housing investment fund developed and managed by Legal and General (L&G).

The new fund, which is a structured extension to L&G’s flagship Affordable Housing Fund, is tailored specifically for the Northern Local Government Pension Scheme (LGPS), to allow them to deploy capital into affordable housing development specifically in the North West.

As part of this, the fund will build affordable homes across the region and make a meaningful impact in addressing housing supply, having already identified a pipeline of new homes that will be developed and operated by Legal & General Affordable Homes.

L&G acknowledged that institutional investment from long-term pension capital is playing an increasingly important role in unlocking more homes across the UK, with the sector offering secure inflation-linked returns alongside positive social impact within local communities.

Given this, L&G said that the fund continues to build on its strategy of attracting third-party capital into private market investments that can deliver social and economic benefits, and responds to the UK government’s desire to work with the private sector to increase the availability of affordable homes across the country.

Commenting on the investment, GMPF chair, Councillor Eleanor Wills, said: ”We are acutely aware of the severe housing crisis both nationally and in the North-West region.

"With record numbers of homeless children placed in temporary accommodation, the ever-growing waiting lists for social housing, and the younger generation being priced out of home ownership.

"This is why we are proud to continue our longstanding partnership with Legal & General to launch a specific vehicle for Northern LGPS that supports the government’s plan to provide much-needed affordable homes for hardworking families while ensuring strong, low-risk returns to secure the pensions of our members."

Adding to this, L&G fund manager, Ali Farrell, said: “This fund is the culmination of a long partnership with GMPF and reflects L&G’s commitment to delivering more affordable housing where it is most needed.

"This is a great example of partnership working between the public and private sectors to increase investment into the affordable housing sector, and increase the choice, quality and availability of affordable housing across North West England."

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