A possible 100,000 to 300,000 homes could be built in the UK every year using local government pension schemes, according to a study carried out by the Future Homes Commission.
The Commission, set up by the Royal Institute of British Architects, said council pension funds could create a £10bn housing fund.
Housing minister Mark Prisk claimed the proposals were innovative and would be carefully considered.
The Commission, consisting of Sir John Banham, Dame Mavis McDonald, Roger Graef OBE and Kate Faulkner, has made the following key recommendations:
- A three-fold increase in the number of new homes being built every year – from the current 100,000 to over 300,000.
- A new, independently managed £10 billion Local Housing Development Fund, financed by the largest local authority pension funds pooling 15 per cent of their assets to invest in new rental and shared ownership housing.
- A greater focus on design in all new homes, ensuring they meet current residents’ needs and making them fit for future generations.
- A more consumer-oriented housing market, with reliable, comprehensive information available to the public.
- A lead role for local government, using their powers and assets now to lead the creation of sustainable communities to meet local housing needs and capable of providing attractive investment opportunities for institutional investors.