Greater Manchester Pension Fund (GMPF) has invested £100m into investment manager Legal and General’s (L&G) investment fund for delivering affordable homes across North West England.
This regional initiative builds on L&G’s Affordable Housing Fund, launched in July 2024, which focuses on creating “high quality, sustainable affordable housing nationally”. Tailored specifically for the Northern LGPS (local government pension scheme), of which GMPF is a member, this fund is designed to address the acute housing challenges in the North West region.
Over 1.3 million people are on local authority waiting lists for social housing across the UK, with 207,000 in the North West alone ( Gov.UK). By developing affordable homes across the region, the fund aims to make a “meaningful impact in addressing housing supply.”
GMPF, the largest LGPS fund in the UK and the eleventh largest defined benefit pension fund, manages pensions for over 375,000 members and pays more than £750 million in benefits annually. These members include employees from Greater Manchester’s local authorities, the National Probation Service, academy schools, and housing associations.
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Institutional investments like this are playing a crucial role in tackling the UK’s housing shortage, offering secure, inflation-linked returns while delivering significant social benefits, according to the provider. This fund advances L&G’s strategy of attracting third-party capital for private investments that deliver social and economic benefits, aligning with the UK Government’s goal to boost affordable housing through public-private collaboration.
The fund will be underpinned by a pipeline of projects developed and operated by Legal & General Affordable Homes (LGAH), which has already invested £1 billion into affordable housing and delivered over 8,000 homes. LGAH’s proven track record positions it as a leader in the sector, committed to increasing the availability and quality of affordable housing.
Councillor Eleanor Wills, chair of GMPF, commented: “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 and ever-growing waiting lists for social housing, this partnership with Legal & General is vital. It supports hardworking families while ensuring strong, low-risk returns to secure the pensions of our members.”
Ali Farrell, fund manager at Legal & General, added: “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. It demonstrates how public and private sectors can work together to expand investment in the affordable housing sector and enhance the availability of quality housing across North West England.”
