The British Government has confirmed a new multi-million pound deal in order to provide more than 2,000 quality new homes across key cities in the UK.
The £400 million development is one of the largest investment in the private sector across Britain and will receive a total of £45 million from the Government’s Home Building Fund. The fund makes money available to kick start new development and housing.
“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.
The project is a joined effort by developer Dandara Group, Government body, 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.
Developer Dandara has already built more than 2,500 build-to-rent properties since 2006.
“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.
The members of the project believe it is a tremendous contribution to solve the current challenges the country’s housing market is facing. Furthermore they believe that this major investment manifests the country’s build-to-rent sector as the emerging star on the property horizon.
In last week’s Autumn Statement, Philip hammond outlined a £7.2 million investment in the UK’s housing sector. This led Barwell to point out that the Government is now preparing to double, in real terms, annual capital spending on housing over the course of the Parliament.