Up to 6,500 homes will be built using this additional funding - meaning the government is well on track to have work underway by 2015 to deliver up to 10,000 newly built homes for private rent.
The Build to Rent fund is designed to help developers build large scale, quality homes specifically for the private rented sector. By demonstrating the viability of the large-scale market the government is laying the foundations for future private investment in the sector.
Through round 1 of the scheme, 18 projects are either in the final stage of due diligence or contracting stage, with around half of these projects in London but also in places including Durham, Liverpool and Birmingham.
Construction has also already started on 2 Build to Rent developments in Southampton and Manchester.
The 36 projects on the shortlist from round 2 will also now go through this due diligence process, with successful bids receiving funding to deliver new homes.
Around 80 per cent of the projects listed are in London - reflecting the demand for good quality, private rented accommodation in the Capital.
The Housing Minister said:
“The private rented sector offers a flexible option to millions of people looking to rent good quality homes. The Build to Rent fund will give tenants far more choice over where they live and raise the standard of the properties on offer.
So I’m pleased that so many developers have applied for a share of our £1 billion fund, and that we are well on track to have work underway by 2015 on 10,000 new homes specifically for private rent.”
Margaret Allen, interim executive director for programmes and recoverable investment at the Homes and Communities Agency, added:
“The volume and quality of bids we have received for round 2 of Build to Rent Programme is encouraging. We are looking forward to working with our partners and the shortlisted bidders to take the submissions through the due diligence process and to support the delivery of the successful bids.”
