Legal & General has announced a huge investment programme in housing and infrastructure, involving the construction of some 10,000 new homes.
The investment will be deployed into productive assets such as infrastructure, affordable housing and urban regeneration, supporting the government’s ambition to drive regional and national growth.
The investment will help deliver some 10,000 new social and affordable homes as well as support the creation of around 24,000 jobs – direct, indirect and induced – nationwide.
Working in partnership with the public sector, L&G claims the investment programme will enable local and combined authorities to unlock their ambitions to drive local economic growth and respond to local needs, such as affordable housing, knowledge economy hubs, infrastructure, retrofitting homes, and regeneration. Funds will be allocated based on local needs and demand, ensuring that every project supports L&G’s dual purpose of delivering both financial returns and positive societal outcomes.
The £2 billion commitment supports the UK Government’s ambition for regional growth by using investment from pension funds in conjunction with public funding to deliver housing and infrastructure projects at scale. This initiative also reflects L&G’s leadership as a signatory to the Mansion House Accord, demonstrating how pension capital can be channelled through funds – such as L&G’s Private Markets Access Fund, which already totals over £2 billion – into the UK to drive long term economic growth.
L&G says the initiative will help unlock regional growth and follows up its investments in Oxford, Glasgow, Cardiff, Newcastle, Salford and Sheffield.
António Simões, Group Chief Executive Officer, L&G, says: “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. 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.”
And the Chancellor of the Exchequer, Rachel Reeves, adds: “This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.
“Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow. Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.”
