Home ownership is a widely desired goal for many people in the UK, but it is also becoming increasingly difficult to achieve. The rising costs of properties, the tightening of lending criteria, and the lack of supply of new housing have created a large segment of “generation rent” – households who can afford to pay rent but not to buy their own homes.
This report explores an innovative solution that aims to address this problem by creating a co-investment partnership between pension funds and tenants. This solution, launched by Allianz Global Investors in late 2021, offers a number of benefits for both investors and co-owners, such as providing inflation linkage, generating a stable and predictable cashflow and offering diversified exposure to residential property.
The report will first define the concept of co-investment and explain its advantages over other forms of property investment. It will then analyse the potential for implementing this solution discuss the implications and challenges of this solution for both investors and co-owners.
The full whitepaper can be accessed here.
