Investment zone: How and why should private capital help the delivery of affordable homes in the UK?

The UK housing crisis looks set to see renewed focus as the cost of living bites. The rise in house prices has stormed ahead of earnings growth, pushing affordability constraints to historic highs in parts of the country. As essentials like food and fuel demand a growing proportion of people’s incomes, the need for good quality affordable homes becomes even more pressing.

Pension schemes are increasingly pursuing alternative sources of sustainable income while also seeking to achieve positive social outcomes for society. We discuss the potential entry points for investors; the risks from a management perspective; and the positive ripple effect investing in affordable homes can have, far beyond increasing housing stock.