£3.5bn Boost in Build to Rent
A substantial investment for the build-to-rent sector has recently been agreed, which promises to give the whole industry a much needed boost.
£3.5bn Boost in Build to Rent
Build To Rent
The Build To Rent scheme involves financial and other institutions subsidising the building of property and subsequently maintaining ownership of individual units.
Recently, the Government secured a deal with PRS Operations Ltd, who are a subsidiary of Venn Partners LPP. The agreement, signed by housing minister Brandon Lewis, has secured £3.5 billion worth of funding for the sector.[1]
Moreover, the Government’s private rented sector Housing Guarantee Scheme allows landlords of purpose-built rented houses to obtain long-term financing. These measures have been put into place to improve supply of professionally managed private rented houses. In turn, managers of these properties will compete with agents and landlords to add much needed demand to the sector.
The £3.5 billion worth of funding will be available in loan form for institutional landlords planning on investing a minimum of £10m in new purpose built rental accommodation.
[1] http://www.lettingagenttoday.co.uk/1287-huge-3-5-billion-boost-for-built-to-rent-sector