UK - Pension funds could become investors in residential rental housing under a governmental agency plan to encourage schemes to support builders in the UK.
It launched an "expression of interest" process for the new initiative today and is talking to investors about the scheme.
A Legal and General spokesperson confirmed its pension department had been in talks with the HCA over the initiative.
The British Property Federation - which has campaigned over the last two years to shift housing policy towards rental - said it believed a total of eight organisations have been in talks with the HCA over building rented accommodation.
It said these were understood to include "one or two big name pension funds".
BPF director for finance Peter Cosmetatos said: "One positive to emerge from the current downturn is that the fall in property prices has made the yields offered by residential property, which are typically modest, much more attractive.
"There is a rare opportunity at this point in the cycle for institutional investors to invest in an asset class that provides an excellent hedge against inflation at a good price."
The HCA is brokering the expressions of interest exercise with property agent DTZ Consulting. Berwin Leighton Paisner are the lawyers acting for the HCA.
DTZ Consulting director Chris Balch said: "The success of the professional rented sector will depend on investor support, but with the political support we now have there is every possibility that we can start to build a home rental market to match our European and American neighbours."
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
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