Johnson targets pension fund investment in homes
Boris Johnson has pledged to ‘bang the heads together’ of pension funds to try to get them to invest in housing.
At a London mayoral hustings event on Friday organised by the National House Building Council, the Conservative candidate said there was a moral case for pension funds and life insurance companies to invest in the sector.
He said: ‘I think we are getting to the stage now where a moral argument needs to be made.
‘They are sitting on these reserves of cash which will do massive benefit to… the people of this city.
‘The Local Government Pension Fund for instance, seems like the absolutely ideal candidate for disgorging its reserves into house building in London. I will convoke a meeting of the pension funds and bang their heads together.’
Labour candidate Ken Livingstone has also pledged to do more to encourage institutional investment into the sector. Brian Paddick, the Liberal Democrat candidate, says if elected he would form a London Housing Company, which would ‘match public land with private investment’, and allow smaller housing associations to raise money more easily on the bond market.
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