Scones, Surpluses and Serious Solutions: Unlocking LGPS for Social Housing

This week, Richard Kennedy, Co-Founder of Cornerstone Place, had the privilege of attending the launch of “New Stable”, a landmark report exploring how the Local Government Pension Scheme (LGPS) can play a far greater role in funding social and genuinely affordable housing. The launch took place at the House of Lords and was hosted with a spirit of collaboration—and a side of excellent scones (warm, with jam and clotted cream in the correct order).

Richard had contributed to the report through an in-depth interview and roundtable discussion, and it was encouraging to see many of the issues he raised during those conversations reflected in the final recommendations. The event brought together leaders from across government, local authorities, finance, and housing to explore how bold thinking and practical structures can better align long-term investment with pressing social need.

One recommendation stood out:

The report calls for reclassifying social housing as “significant national infrastructure”.

This would be a game-changing shift. It would place social housing—especially for those in acute need—on the same footing as roads, energy, and transport in the eyes of government and institutional investors. Reframing housing in this way would open the door to long-term LGPS capital, aligning financial stewardship with social purpose at scale.

Other key proposals in the report include:

• Putting surplus LGPS assets to work locally, with clearer guidance on fiduciary duties and the consideration of social returns

• Building credible pipelines of investment-ready projects — exactly what Cornerstone Place is working to deliver across small, underutilised sites

• Supporting joint ventures between councils, LGPS pools, and delivery partners — a model we have already demonstrated works through our transparent, impact-led approach

Richard left the event inspired and encouraged — not just by the strength of the ideas, but by the shared willingness to act. The LGPS has enormous untapped potential to fund homes with lasting social value. And organisations like Cornerstone Place are ready to play our part in making that vision a reality.

Because this isn’t just about housing finance — it’s about investing in futures.