A £3.5bn pot of money for developers who build new homes for private rent is being made available courtesy of the taxpayer.
The Private Rented Sector Guarantee will mean that developers and other organisations such as housing associations will be able to borrow funds at cheap rates.
Several providers are already in talks with the Government about particular schemes.
The build-to-rent fund is being made available alongside a £3.5bn pot called the Affordable Housing Guarantee Scheme, aimed at housing associations to build new homes to rent out to families in need.
Both funds are topped up a further £3bn, which will be released according to demand.
Housing minister Mark Prisk said: “The £10bn Housing Guarantees Schemes are now open for business, with a groundbreaking new offer of low-cost lending to get spades in the ground, create new jobs and deliver thousands of new homes specifically for rent.
“With the Government’s backing, investors can now unlock billions of pounds to build high quality homes for private and affordable rent.
“These changes offer a greater choice for new tenants across the country.”
Comments
Central and local government should use the 10m they currently give Shelter to invest directly in homes built to rent for the low paid.