A catalyst for change: the importance of Place-based impact investing

As the UK’s housing crisis deepens, the pressure on our communities is mounting: rising costs, growing social housing waitlists, and a widening gulf between incomes and rents are placing ever greater strain on people and places.  

To counter this, local authorities must step up and play a leading role in developing long-term, locally driven investment strategies that address housing needs at their root. This isn’t just about building more homes – it's about reshaping how and where we invest to create sustainable, inclusive communities for the future.

The government's 'Fit for the Future' reforms have fundamentally shifted the UK investment landscape, creating a mandate for the £400bn Local Government Pension Scheme (LGPS) to invest locally at scale. This creates a significant opportunity and opens up the potential for LGPS funds to become catalysts for inclusive economic growth, driving investment into areas like affordable housing, clean energy, and regional business development.  

By aligning with local priorities and working closely with strategic partners, LGPS funds can deliver both strong financial returns and tangible, long-term benefits for communities across the UK.

We recently teamed up with Thriving Investments to co-sponsor a new whitepaper from The Good Economy, ‘Scaling-up Local Investing for Place-Based Impact’, which lays out a strategic roadmap for how local government can help drive real change through place-based impact investing.  

Ultimately, there is no one-size-fits-all model. Every place is different and local investment strategies should reflect the needs and wants of local communities. It is this kind of targeted, joined-up thinking, built on collaboration between pension pools and local authorities, that can unlock potential and tackle deep-rooted inequalities across the UK.

At igloo, we take a People, Place, and Planet-first approach to everything we do, shaping both new and existing Communities in ways that are truly sustainable – not just for the climate, but for the people who live, work, and thrive in them.

Through our investment management vehicle, igloo IM, we champion sustainable development that delivers meaningful impact alongside long-term financial success. Working with like-minded developers, investors and local authorities to focus on urban regeneration projects that generate innovative, financial, social and environmental returns.

By partnering with local authorities and urban impact funds such as the LCR Chrysalis Fund and Lancashire Urban Development Fund, we are helping unlock value for our communities – supporting local authorities to prioritise investments that benefit local businesses and residents for generations to come.

Read the full whitepaper to explore how igloo is helping shape practical solutions, and how place-based impact investing can secure the UK’s housing future with confidence and purpose:

‍Scaling-Up Local Investing for Place-Based Impact - The Good Economy

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