The UK Government has confirmed a new multi million pound deal to provide more than 2,000 quality new homes for rent in key cities around the country.
The £400 million development is one of the largest private sector investments in the country which will receive £45 million from the Government’s new Home Building Fund which makes money available to kick start new development and house building.
A total of 2,062 homes will be built in total with 995 in Manchester, 744 in Leeds and 323 in Birmingham.
‘Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone,’ said Housing Minister Gavin Barwell.
‘This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester, it will create jobs and opportunities for many hundreds of people,’ he added.
National developer Dandara Group is spearheading the project with support from the Government’s housing delivery agency, the Homes and Communities Agency (HCA), and bank HSBC.
Sir Edward Lister, HCA chairman, said the agency is also working on a number of other deals with builders of all sizes and working to attract others. ‘This massive investment, one of the largest private rented deals this year, shows our determination to get builders building and substantially grow the market in this country,’ he added.
Dandara has already built more than 2,500 properties of this type in the last 10 years in the UK, including Scotland’s largest private rented sector scheme of almost 300 properties in Aberdeen.
‘We are now in a position to actively work with institutions, and independently, to make a sizeable contribution to this market,’ said Dan Tynan, chairman of the Dandara Group.
Those involved believe it is a significant contribution to the housing challenges currently faced in the country and is further evidence of investment in the private rented sector, also known as Build to Rent, emerging as a distinct asset class.
Last week’s Autumn Statement outlined £7.2 billion of investment in housing. Barwell pointed out that the Government now expects to double, in real terms, annual capital spending on housing over the course of this Parliament.
He added that the Government has set out comprehensive housing measures that will address the needs of people at different stages of their lives, ensuring the housing market works for everyone, not just the privileged few.