The government has launched a Build to Rent fund to accelerate the growth of large housing schemes for the private rental market.
The competition, which will be open to schemes of at least 100 units, will be run by the Greater London Authority in the capital and the Homes and Communities Agency (HCA) across the country.
Management companies will have the chance to invest in these new rental developments, and developers will then repay the investment from government.
Housing Minister Mark Prisk said:
“A healthy rental housing market must have a broad range of choice across the board. But for it to grow and develop, we must first attract new investors. The Build to Rent fund will support this, helping to build homes specifically for private rent and breathing new life into the sector.
“And by driving this market in housebuilding, the fund will also help create new jobs, build the homes that families need and local people want, and support economic growth across the country.”
Mayor of London Boris Johnson said:
“The private rented sector now houses a quarter of Londoners and has the potential to support the delivery of a huge number of new homes in the future.
I welcome this funding and I will continue to make the case that investment in London’s housing infrastructure is one of the best ways to deliver much needed construction jobs and economic growth now, while at the same time laying the foundations for our economic growth for years to come.“