Build to Rent funds 6,500 homes

Up to 6,500 homes will be built using the extra funding, meaning work should start by 2015 to deliver up to 10,000 newly built homes for private rent.

Kris Hopkins, housing minister, said: “The private rented sector offers a flexible option to millions of people looking to rent good quality homes. The Build to Rent fund will give tenants far more choice over where they live and raise the standard of the properties on offer.

“So I’m pleased that so many developers have applied for a share of our £1bn fund, and that we are well on track to have work underway by 2015 on 10,000 new homes specifically for private rent.”

Some 18 projects are either in the final stage of due diligence or contracting stage, with half of them being based in London.

Construction has already started on two Build to Rent developments in Southampton and Manchester.

Boris Johnson, the mayor of London, said: “With a soaring population and unprecedented demand for new homes in the capital we have set the most ambitious targets in the GLA’s history to help provide the homes hard working Londoners need.

“The private rented sector has a huge part to play in this. Boosting the supply of good quality well-designed homes to rent will lead to a more balanced rental market, improved services for tenants, and helps bring forward new development, while stimulating economic growth in the capital.”

Of the 36 projects on the shortlist, Housing Capital Trust has plans to build over 500 homes for rent in Manchester while Development Securities will build 350 homes across Brent, Greenwich and Redbridge for rent.

Margaret Allen, interim executive director for programmes and recoverable investment at the Homes and Communities Agency, said: “The volume and quality of bids we have received for round 2 of Build to Rent Programme is encouraging.

“We are looking forward to working with our partners and the shortlisted bidders to take the submissions through the due diligence process and to support the delivery of the successful bids.”