The Future Homes Commission has set out plans to fund a three-fold increase in the number of new homes being built every year, paving the way for new jobs in the trades.
The Commission, set up by the Royal Institute of British Architects, has called on Government to use council pension pots to fund a massive housing programme that could see the building of 300,000 homes a year and boost the construction industry.
The Homes Commission argues for the creation of a new £10 billion Local Housing Development Fund, financed by the largest Local Authority pension funds, that would use 15% of their assets to invest in new rental and shared ownership housing.
The new scheme would play a lead role for the government to use localassets to lead the creation of sustainable communities and meet local housing needs as well as create thousands of jobs in the building construction industry.
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 £25 million to pay for building work.
Both partners will then receive a capital payment on the sale of houses and an annual revenue return.