The landmark deal is set to deliver more than 7,600 new, high-quality homes at London’s Wembley Park development in Brent, with at least 6,800 of the properties destined for the rental market.
The news comes off the back of significant expansion in the sector with 80,855 new homes either already completed or planned across England and potential for investment in private rentals to grow to £70 billion nationwide by 2022, according to industry estimates.
Such investment could provide a further 15,000 homes each year, with the potential to reach at least 240,000 properties built specifically for private rental by 2030.
Speaking at the announcement, government Housing Minister Alok Sharma, said:
“We’ve been taking action to create a bigger and better private rental market, supporting new build to rent developments so that tenants can have greater choice.
“Build to rent developments are a great example of doing just that, boosting the choice and quality of homes on the market “meeting the needs of renters in cities and towns across England.”
As well as funding support for appropriate schemes such as Wembley Park, the government is also looking at a number of further measures to open up the choice of rental properties on the market.
These include changes to planning rules so councils actively plan for more build to rent homes where they are needed, making it easier for private rental developers to offer affordable rents and introducing longer tenancies to provide better security for renters, especially families.
“This move towards supporting the private rental sector will positively shape the housing market for years to come,” said Phil Carlin, managing director at SevenCapital. “It will be especially welcome in cities like Birmingham where supply shortages have persisted for some time, particularly in the city centre, where there is strong demand and a ready-made pipeline of would-be tenants.”