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Council pension pots could fund 300,000 homes a year

The Future Homes Commission has set out plans to fund a three-fold rise in new house building without any call on public funds.

The Commission, set up by the Royal Institute of British Architects, has called on Government to use council pension pots to fund a massive building programme of up to 300,000 homes a year.

It argues that 15 of the largest council pension funds should be pooled into a £10bn fund to aid the financing of up to 6m new homes over the next 20 years.

A similar approach to that proposed is being pioneered by Manchester City Council, which is working with the Greater Manchester Pension Fund to build 244 homes.

The city council will release land into the joint venture at fair market valuation and GMPF will inject £25m to pay for building work.

Both partners will then receive a capital payment on the sale of houses and an annual revenue return.

The report also argues that the housing should be built in sustainable communities and offer more generous space standards to help councils to recycle them to the private sector.

About Fiona Russell-Horne

Fiona Russell-Horne
Editor-in-Chief across the BMJ portfolio.

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