Prudential homes in on housing drive
INSURER Prudential is spearheading a drive by the insurance industry to bank-roll more social housing projects.
The Pru is said to have held talks with the Treasury about pouring nearly £300million into housing schemes as part of a £25billion push to boost the UK’s infrastructure.
It is understood to be planning to provide about £156million to about 17 housing associations in Wales, which would trigger another £120million in publicly funded grants.
The cash should underpin the construction of about 1,000 homes. It will come from the Pru’s long-term insurance funds via a funding mechanism designed by its asset management business M&G. Under European financial regulations governing capital holding by banks insurers can invest in a wider number of assets to provide long-term returns.
Last December a group of six insurers including Aviva, Prudential and Standard Life made a pledge to invest £25billion in infrastructure projects to boost the UK economy.