Consultation to allow councils to invest pension finds in housing

The CLG has published proposals to enable local government pension scheme funds to be used for housing and infrastructure projects. The consultation document includes an option to increase the amount that can be invested in housing and infrastructure projects from 15 per cent to 30 per cent of the overall fund. This would enable councils to inject up to £45 billion in such arrangements.

A recent report by the Future Homes Commission said council pension funds could be used to fund 300,000 homes a year. The Local Government Pension Scheme England and Wales is administered by 89 separate local funds that hold combined investment assets worth £150 billion.