Avon Pension Fund is set to invest £50 million in a national initiative aimed at increasing the supply of affordable homes. This move is part of a broader strategy to address the shortage of affordable housing in the South West and across the UK.
The £6 billion Avon Pension Fund, a local government pension scheme (LGPS) serving 140,000 members across Bristol and Bath, is enhancing its local investment in affordable properties. This £50 million investment will finance the construction of approximately 250 new homes, providing housing for up to 1,000 individuals, with a fifth of these homes located in the Avon area.
Working through the Octopus Affordable Housing Fund, Avon Pension Fund joins forces with other LGPS funds, including those from Devon, Gloucestershire, Clwyd, and London. Octopus aims to develop 5,000 homes in the upcoming years.
Councillor Shaun Stephenson-McGall of the Avon Pension Fund Committee highlighted the significance of the investment: “There is a real need for affordable housing locally and across the UK. This investment will provide energy-efficient, affordable housing for those that need it most including families and key workers. This investment will deliver financial returns for the pension fund as well as benefiting society as we help increase the supply of affordable housing.”
Being administered by Bath & North East Somerset Council, Avon Pension Fund looks after over 140,000 members across 450 employers in the former Avon area. The fund declared last year its readiness to allocate around £175 million in local impact investments. In January, it announced a £50 million investment into south-west solar farms and indicated that further investments are likely to include funding for small and medium-sized enterprises.
The £50 million investment by Avon Pension Fund marks a significant step towards addressing the housing crisis in the South West and the UK. By funding the development of affordable and energy-efficient homes, the initiative promises not only societal benefits but also financial returns for the fund.
