New Private Rental Sector Growth Thanks to Housing Fund
A £200m pot which is set to kick-start home building within the private rental market has been launched by housing minister Mark Prisk. Called Build to Rent, the idea behind the fund is that it will give developers, who traditionally build to sell, the confidence to construct homes tailored to the needs of a particular rental market in a specific area.
The scheme will pay for the work to be done until the flat or house has tenants in it, after which the developers pay the government back. At the same time, local businesses, especially larger organisations and management companies, will be encouraged to invest in the new developments.
An additional hope is that the scheme will play its part in raising the standard of build quality across the private rental market. As things are at the moment, most private landlords are individual investors with relatively small property portfolios. The aim of the fund is to stimulate the market so that bigger housing organisations feel more able to play their part in the private rented sector.
Mark Prisk said: “A healthy rental sector must offer a broad range of choice to everyone. This fund is intended to create jobs, construct the properties that families need and which are wanted by local people, and encourage economic growth across the UK.”
He added that the project is in line with Montague report recommendations into rented properties, published last year, and that the government would work to raise awareness of the fund and provide practical support.