£200 million Build to Rent fund to boost housebuilding
January 8, 2013
The new Build to Rent fund aims to cut the risk for developers more traditionally used to building homes for sale who are looking to branch out into building homes for the Private Rented Sector.
By financing the construction of rental homes until they are built, let out and managed, the fund will give developers the freedom to build homes specifically for that market with confidence.
Management companies will have the chance to invest in these new rental developments, and developers will then repay the investment from government.
Launching the new fund, the Housing Minister described it as yet another step to support housebuilding which will help boost the economy, create jobs and strengthen the housing market by providing people with a broader housing choice.
Build to Rent – Reviving the rental market
Mr Prisk said that Build to Rent follows recommendations contained in the Montague report and will help address the varying level of quality across the nation’s private rented sector.
The majority of private rental landlords are small-scale, individual investors. This fund will redress the balance, by stimulating the market in private rented homes for large-scale housing organisations that will in turn help set a new benchmark for landlords across the country.
To kick start this new, larger scale market for privately rented homes, the minister said that Build to Rent will fund ‘demonstration’ projects to show how it might work.
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.”
Original Press Release can be found here