Housing minister Kris Hopkins has recently announced the third deal in the Government’s Build to Rent Scheme. The announcement suggests that the scheme is well on track to reach the 10,000 new home target set for 2015.
Build to Rent
The Build to Rent scheme has been introduced by the Government to help builders develop large, quality accommodation designed for the private rented sector. Investment in the large-scale market seems to suggest the Government is looking to the future of the buy-to-let industry. Manchester and Southampton are amongst a number of first round cities where Build to Rent construction has already taken place.
36 round two projects have already been outlined, which proposes to add a further 6,500 homes to the sector.
The latest deal has outlined plans for the Mill Housing Group to receive up to £8.7m to work together with Bovis Homes to build an additional 190 properties in order to be let.
190 Rental Homes to be Built
Broken down into 110 houses and 80 apartments, the deal covers homes to be built in six different areas:
- Wickhurst Green: 46 homes
- Charlton Hayes, Bristol: 43 homes
- Coopers Edge, Brockworth: 31 homes
- Oak Tree Place, Southampton: 30 homes
- Great Kneighton, Cambridge: 27 homes
- Aspen Park, Hemel Hempstead: 13 homes
Mr Hopkins was understandably positive when announcing the new deal, stating: “Millions of people use the flexible option of renting in the private sector. I want to ensure tenants have a choice of high-quality homes, rented under reasonable terms. So I’m pleased that this deal is complete to build 190 homes across six sites specifically for private rent. And with more sites being considered for a share of our £1 billion Build to Rent fund, we’re well on track to have work underway on 10,000 homes for rent by 2015.”
Chief Executive of the Mill Group, David Toplas, also said: “This new joint venture forms a key part of our strategy to build a significant private rented sector portfolio and demonstrate our commitment to structure, source, finance and invest in the right opportunities.
“There is a significant, well recognised shortage of homes and an ever-growing need for good quality, affordable rental accommodation, and this deal will help tackle that. We are delighted to play our part to encourage greater institutional investor participation, ultimately helping spur an increase in supply of private rental homes.”