Pension fund to invest £50M to boost supply of affordable housing

Avon Pension Fund is to invest £50 million in building affordable homes in the south-west and nationally over the next few years. 

Its new investment will fund approximately 250 new affordable homes for up to 1,000 people, a fifth of which will be in the Avon area. 

Councillor Shaun Stephenson-McGall from the Avon Pension Fund Committee said: "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 in helping increase the supply of affordable housing.

Avon Pension Fund is making this housing investment through the Octopus Affordable Housing Fund alongside other LGPS funds including Devon, Gloucestershire, Clwyd, and London. 

Last year the pension fund said it was ready to invest about £175 million into local impact investments. 

In January 2024 it announced a £50 million investment into south-west solar farms. The Fund said the next step in local impact investment is likely to take the form of funding small and medium-sized businesses.