Funding boost of £3.5bn for new rented homes
Housing and planning minister Brandon Lewis has signed a new agreement aiming to help unlock £3.5bn in funding to build new homes specifically for private rent across the country.
This new agreement with PRS Operations Ltd, a subsidiary of Venn Partners LLP, is part of the government’s wider efforts to create a bigger and better private rented sector.
The private rented sector housing guarantee scheme enables landlords of new rented homes to use a government guarantee to secure long-term financing. This investment will increase the supply of purpose-built, professionally managed private rental homes giving tenants more choice of better quality homes.
Initially, up to £3.5bn in government-backed loans will be made available to landlords looking to invest at least £10m for new homes available for private rent, with the option to increase this to £6.5bn in future.
Venn Partners has created PRS Operations Ltd, a new organisation that will secure institutional investment in building homes specifically for private rent. This new organisation will work to arrange up to £3.5bn of funding, and then offer a series of smaller loans to eligible landlords looking to move into this expanding market.
Brandon said: “House building is an important part of the government’s long-term economic plan. Today’s deal with Venn Partners to provide the guarantees scheme is part of a package of investment measures to help generate growth in the rented sector, while ensuring value for money for the taxpayer.
“We’ve pulled out all the stops to get the country building since 2010, including by creating a bigger better private rented sector. This is an exciting and important move that will help strengthen the sector so that it meets the needs of tenants well into the future, and it wouldn’t have been possible without the tough economic decisions we’ve had to make to restore confidence in our economy.”
