LGPS Central publishes social housing investment report
Author: LAPF Investments | Published: October 2, 2026
LGPS Central has published a new report that sets out how local authority pension funds can grow investment in social housing.
In this, it examines how some of the challenges facing long-term pension investment in housing can be overcome, and shows how pension capital invested in housing can meet the investment objectives and fiduciary responsibilities of local government pension funds.
As part of this, it outlines how six measures can help create a stronger pipeline of investable housing opportunities: marco-economic stability; consistent housing policy; more efficient planning; support for SME builders; more support for local government and others to build; and the right approach to financial incentives and regulation.
It highlights the scale of the UK’s housing shortage, noting that 208,600 net additional dwellings were added to England’s housing stock in 2024/25, against the government’s target of 300,000 homes a year.
It also points to pressure on affordable and social housing, with 1.34 million households on local authority waiting lists as at 31 March 2025, and 64,762 affordable homes delivered in England in 2024/25.
It further outlines examples of how long-term pension capital can support more UK housing where opportunities meet the required balance of return, risk, diversification and liquidity, while remaining aligned with local government pension scheme objectives and fiduciary responsibilities.
Housing – including affordable and social housing – can offer stable, potentially inflation-linked income, diversification and exposure to strong underlying demand.
LGPS Central chief executive Richard Law-Deeks said: “The UK needs more homes, particularly affordable and social housing. Long-term investors like the Local Government Pension Scheme can help, where opportunities meet the investment needs of our Local Authority pension fund clients.
“Housing, including affordable and social housing, can offer stable, potentially inflation-linked income, diversification and exposure to strong underlying demand.
“Our report, published today, sets out practical solutions: stable and consistent policy, more effective planning, and more support to local authorities and others to build, and the right approach to the fiscal and regulatory regime.”
