Legal & General (L&G) has announced a £2bn commitment to impact investment by 2030, aimed at accelerating regional growth and regeneration across the UK.
The investment is expected to help deliver approximately 10,000 new social and affordable homes and support the creation of around 24,000 jobs—direct, indirect, and induced—nationwide.
Building on its longstanding collaboration with the public sector, L&G’s investment programme is designed to enable local and combined authorities to unlock economic potential and respond to local priorities. These include the delivery of affordable housing, development of knowledge economy hubs, infrastructure improvements, home retrofitting, and large-scale regeneration projects.
L&G says funding will be allocated based on local needs and demand, with all projects required to align with its dual objectives of generating financial returns and delivering measurable social impact.
L&G adds that its commitment supports the UK government’s ambition for regional growth, particularly through the use of pension capital alongside public funding to deliver housing and infrastructure at scale. It also reflects L&G’s role as a signatory to the Mansion House Accord, which aims to unlock pension investment into UK productive assets.
L&G plans to channel funds through vehicles such as its £2bn Private Markets Access Fund, illustrating how institutional capital can support long-term economic growth. The company has already invested in key UK cities including Oxford, Glasgow, Cardiff, Newcastle, Salford, and Sheffield.
António Simões, group chief executive officer, L&G, said: “As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our £2 billion commitment will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities, and driving both regional and national growth.”
The chancellor, Rachel Reeves, added: “This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.
“Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow. Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.”
L&G’s announcement comes ahead of the first-ever Regional Investment Summit in Birmingham, where the Sterling 20 – a new investor-led partnership of twenty of Britain’s largest pension providers and insurers – will convene to identify and fund key infrastructure projects across the UK. Coordinated with Government, the group will leverage over £3 trillion in assets to drive growth and prosperity in every region.
Previous regional investments, delivered by L&G include a £350m partnership with Newcastle City Council and Newcastle University which helped transform the former Scottish and Newcastle Brewery site into the 24-acre Newcastle Helix. The scheme supported the development of homes, offices and research facilities, helping to attract high-value STEM jobs to the area, saved c.13,000 tonnes of CO₂ and helped to accelerate innovation and economic growth in the North-East.
In Cardiff’s City Square, a £1bn regeneration project, delivered by L&G in collaboration with Cardiff City Council, helped to create new transport links, offices and homes helping to generate 13,000 additional jobs. The project added £1.1 billion of gross value to the local economy, underscoring the effectiveness of place-based investment in local assets, delivered in partnership with the public sector, at delivering both financial returns and social impact.
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