A new report from the Future Homes Commission expects to see local government pension funds invest as much as ten billion pounds in new housing projects. The Commission was chaired by Sir John Banham of the Audit Commission and was originally set up for the Royal Institute of British Architects.
Banham stated that the new amount will help create funds to build 300,000 homes that can be rented or put on the market for shared ownership. He also suggested that council pension funds could contribute an additional 15% of their assets to the project.
At the moment about 100,000 new homes are constructed on a yearly basis on brownfield land, which is land that is located close to towns and cities. If pension fund investment funds were increased then this number could possibly even triple by the end of the next few years.
In addition, making a huge overhaul of the current house building process would help to encourage more investment in construction and allow homes to be built up without charging the government any more for the projects or creating any additional debt.
The report also asked that a ‘greater focus’ be made on designing new homes to make sure that they would be a good ‘fit’ for future generations and to help make sure that they were going to offer a good return on future pension funds.
Finally, local authorities will have to take a more hands-on role when it comes to acting on behalf of their taxpayers to make sure that local areas have access to the housing developments they need according to specific details from the report.
Sir Merrick Cockell, the Local Government Association chair, stated that the real block was going to be offering prospective buyers and developers access to finance.