First Recipients of Build to Rent Fund Announced

The first recipients of the government's £1bn build-to-rent funding have been revealed. The government has announced 45 companies who will benefit from the scheme's lending at 2.07% over 5 years...

The first recipients of the government's £1bn build-to-rent funding have been revealed. The government has announced 45 companies who will benefit from the scheme's lending at 2.07% over 5 years, including Genesis Housing Association, PlaceFirst and house-builder Crest Nicholson, which submitted its Bath Riverside scheme, as well as Taylor Wimpey, Lendlease, Persimmon and Grainger.

Announcing the fund recipients housing Minister Mark Prisk said: "We've seen overwhelming demand for the fund, and it's become clear that there's a real appetite for rental investment. We want to support that, which is why we've made a £1bn Budget boost to the fund.

"Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs."

Mayor of London Boris Johnson added: "With London's population expanding at record pace, we need to build around a million new homes in the next 25 years to meet demand and avert a possible housing crisis. Increasing supply in the private rented sector has a massive part to play in this. Building new well-designed homes to rent will also lead to a more balanced rental market for Londoners, as well as providing construction jobs and stimulating growth for London's economy by making it an even better place to live and work in."

Ian Fletcher, director of policy at the British Property Federation, said: "The bids show the depth and breadth of interest from investors, to housing associations, house builders and construction companies. There are some big names, but also smaller innovative companies, and it all bodes well for round two.

"The further members of the task force have an excellent breath of experience and skills and under the stewardship of Andrew Stanford should act as a good support function within Government for local authorities and this burgeoning build-to-let sector."

- Thursday 30 May 2013

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.