Andy Burnham’s housing ambitions will depend on creating commercially viable opportunities that can attract long-term institutional capital, Isio has stated.

The comments follow Burnham’s pledge to deliver the largest council housebuilding programme in 50 years if he becomes Prime Minister, as part of his wider economic agenda.

Isio chief investment officer, Barry Jones, said the commitment had the potential to address one of the UK’s most significant long-term economic challenges, while also supporting employment, regional growth and productivity.

However, he argued the key question for markets would be how the programme is delivered while maintaining fiscal credibility.

“Burnham has repeatedly committed to operating within the existing fiscal measure, meaning investors will be looking closely at how major investment programmes are funded without increasing pressure on public finances," he said.

Jones stressed that long-term capital could play an important role in supporting housing and regeneration, but warned that encouraging pension schemes to invest more in the UK is “only one part of the equation”.

“Equally important is ensuring there is a sufficient pipeline of high-quality, investable opportunities capable of attracting long-term institutional capital,” he said.

Jones suggested that large-scale housing and regeneration projects could help meet this need, provided they are structured to offer appropriate risk-adjusted returns.

For defined contribution (DC) pension schemes, he noted that well-structured investments in housing and infrastructure could provide access to long-duration assets that complement diversified portfolios.

For defined benefit (DB) schemes, he said a broader pipeline of investable long-term assets could also support insurers in meeting growing demand for bulk purchase annuities.

This, Jones stated, could help originate the assets needed to back future buy-in and buyout transactions.

“The emphasis should remain on creating commercially attractive investment opportunities, rather than directing capital towards domestic assets for policy reasons,” he added.

Meanwhile, Jones acknowledged that the pensions industry had already made significant progress through the Mansion House reforms and the wider agenda to unlock investment into productive finance.

However, he argued that the next phase should focus on developing a stronger pipeline of investable UK assets, rather than changing direction.

“For DC schemes, that would provide greater access to high-quality UK private market opportunities without compromising the principles of diversification or member outcomes," he said.

“For the DB market, it would help expand the supply of long-term assets available to insurers as pension risk transfer activity continues at record levels, potentially supporting capacity and pricing across the bulk annuity market.”

Jones concluded that if the government’s housing ambitions are supported by commercially viable investment structures, they could attract long-term pensions capital while supporting economic growth.

“That would represent a more suitable approach than relying solely on public expenditure and could reinforce the role pension investment can play in financing the UK’s long-term priorities."

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