UK housing minister announces £3.5 billion for new rental homes across the country

Taylor Scott International News

The UK’s housing minister has signed a new agreement to unlock £3.5 billion in funding to build new homes specifically for renting across the country. Brandon Lewis said that the deal with PRS Operations Limited, a subsidiary of Venn Partners LLP, is important to the government’s wider efforts to create a bigger, better private rented sector. The government’s private rented sector housing guarantee scheme enables landlords of new rented homes to use a government guarantee to secure long term financing. Lewis explained that this investment will increase the supply of purpose built, professionally managed private rental homes giving tenants more choice of better quality homes. Initially, up to £3.5 billion in government backed loans will be made available to landlords looking to invest at least £10 million for new homes available for private rent with the option to increase this to £6.5 billion in future. Venn Partners has created PRS Operations Ltd, a new organisation that will secure institutional investment in building homes specifically for private rent. This new organisation will work to arrange up to £3.5 billion of funding and then offer a series of smaller loans to eligible landlords looking to move into this expanding market. ‘House building is an important part of the government’s long term economic plan. The deal with Venn Partners to provide the guarantees scheme is part of a package of investment measures to help generate growth in the rented sector, while ensuring value for money for the tax payer,’ said Lewis. Other measures include a £3.5 billion affordable housing guarantees scheme, which has already helped provide over £1 billion in investment to provide over 9,000 new affordable homes, on some of the cheapest terms in the sector’s history The £1 billion Build to Rent Fund, which is on track to provide up to 10,000 newly built homes specifically for private rent across the country and the Private Rented Sector Taskforce, which has identified aspirations to invest over £10 billion of equity in the private rented sector. ‘We’ve pulled out all the stops to get the country building since 2010, including by creating a bigger better private rented sector. This is an exciting and important move that will help strengthen the private rented sector so that it meets the needs of tenants well into the future,’ Lewis explained. According to Danny Alexander, Chief Secretary to the Treasury, unlocking £3.5 billion of funding for the private rented sector will ensure that the government delivers the homes that people across the country need. ‘Housing starts are now at a six year high thanks to this government’s focus on building more homes. Investment in housing is essential for the future of an economy. That’s why for the first time in a generation, this government plans to directly commission homes, as well increasing investment in affordable housing to ensure the delivery of 275,000 affordable homes over the next five years. These guarantees will help to deliver more homes in communities across Britain,’ he added. Attracting significant institutional investment to the… Continue reading →

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