M&G to invest £1 billion in UK rental housing
Partnership with Asian pension fund targeting build-to-rent sector
3 December 2025
M&G Investments has announced a £1 billion commitment to UK housing, in partnership with a major Asian pension fund, to deliver more than 3,000 build-to-rent homes across London and key regional cities over the next three years.
The joint venture, structured by M&G Real Estate, will fund new residential developments in areas with acute housing shortages, including Manchester, Birmingham, Leeds, and Bristol, alongside the capital. The investment is intended to support the UK Government’s wider target of building 1.5 million homes during the current parliamentary term.
The vehicle is backed by £600 million in equity from both M&G’s £130 billion With Profits Fund and the unnamed Asian pension fund. Leverage will be used to scale the portfolio to over £1 billion in value upon completion.
The move comes amid historically low housing delivery rates in London, where demand for rental homes continues to outpace supply. M&G cited the limited availability of purpose-built rental accommodation, currently just 2% of the private rented sector in the capital, as a key opportunity for long-term investment.
M&G Real Estate already manages £6.7 billion in residential assets across the UK, Europe, and Asia, and said the new initiative reflects growing international investor appetite for exposure to UK housing.
The investment aligns with M&G’s strategy of using its insurance capital alongside external institutional investors to develop scalable real assets platforms. The company previously announced a strategic partnership with Japan’s Dai-ichi Life HD in May 2025 to expand in European private markets.
The new housing developments will aim to provide high-quality, professionally managed rental homes, with shared spaces and modern amenities aimed at improving tenant experiences.