Norfolk pension fund checks affordable housing rents stay below market rate
The Norfolk Pension Fund invests in affordable housing and receives quarterly reports from fund manager Legal & General to ensure rents charged to tenants remain within affordable limits. Homes England grant conditions also require formal affordability commitments on many of the properties.
The Norfolk Pension Fund holds investments in affordable housing and has mechanisms in place to monitor that tenants are not charged above agreed rent levels, the Pensions Committee heard on 10 March 2026.
Legal & General, which manages the housing investments on behalf of the fund, provides quarterly reports showing what percentage of market rent is being charged on properties classed as affordable. The reports also cover occupancy rates and other key indicators.
The Pension Fund Accountant, Charlotte Freeman, told the committee that these reports allow the fund to check that rents remain within expected parameters. The Head of Funding and Investment, Alex Younger, added that formal affordability commitments are built into the conditions of Homes England grants, which underpin many of the projects the fund invests in.
The committee raised the question after discussing a broader update on the fund's responsible investment activities, which also covers local investments, impact investments, and timberland holdings.
The fund is also in the process of moving its investment management to the LGPS Central Pool. Officers told the committee they expect this transition to bring improved reporting on responsible investment and climate risk, though not immediately.