{
  "id": 16168764,
  "title": "UK real estate the clear favourite for pension funds",
  "url": "https://urgent.news/2026/10/23/uk-real-estate-the-clear-favourite-for-pension-funds",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-23T09:03:54.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/uk-real-estate-the-clear-favourite-for-pension-funds/"
  },
  "original_language": "en",
  "account": "UK pension funds are heavily investing in real estate, according to recent reports. After signing the 'Mansion House Accord', a pact involving 17 UK pension providers, major providers have begun increasing their allocations in private markets. At the end of 2025, these signatories held £22.1bn DC growth-phase assets in global private markets, accounting for 6.6% of their investments. In comparison, the UK's allocation was £11.1bn or 3.3%, according to ABI and Pensions UK. The primary focus of these investments is property and real estate, which constitute 72% or £8bn of the private market investments. Social and affordable housing, a traditional method for gaining exposure, also falls under this category. Private equity currently holds a minimal share of 4.5% or £500m in these investments. However, worries have been raised regarding whether a targeted UK private markets allocation would lead to missed opportunities for returns. Some reservations about moving away from diversified global or European mandates still exist among the signatories. Isio, a pensions advisory firm, noted that many providers are opting for UK property investments as a means to achieve their 5% target. The ease of property investment is attributed to the UK market's maturity, especially when compared to venture capital and growth investing. Many signatories had already established real estate strategies before the accord's signing. Prior to the accord, pension funds Nest and Legal & General formed a £1bn UK build-to-rent housing partnership with Dutch pension fund manager PGGM. While progress has been made towards the accord, it might not be aligned with the UK government's initial intent. The original Mansion House Compact, which focused on unlisted equities to support the UK's scale-up ecosystem and clean energy startups, might end up missing this purpose as allocations increase.",
  "summary": "As UK pension funds report on their progress towards increasing their allocations to the country’s private markets, real estate is getting the lion’s share of the investment.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}