Top agent hits at Build To Rent pro-London bias

A leading lettings agent has criticised the government for favouring London projects in the latest list of Build To Rent investments.

Housing minister Kris Hopkins this week announced 36 shortlisted projects for the second tranch of government funding. Although there are developments in Kirklees, Liverpool and Manchester among those to benefit, the lion's share are in London.

Now Ajay Jagota of north east England lettings company KIS Lettings fears the government risks overlooking areas such as his. KIS manages properties for 700 landlords from branches in Sunderland, South Shields, North Shields as well as Welwyn Garden City, and was named Lettings Agent of the Year at the 2013 Landlord and Letting Awards.

The government's press release announcing this funding was titled tenants to get better choice of newly-built homes to rent' but they forgot to add as long as they live in London': says Jagota.

The government's £1 billion Build to Rent fund is designed to help developers build large-scale quality homes specifically for the private rented sector. Not one of the 36 projects on the latest shortlist is in north east England and some 80 per cent of the 6,500 homes planned for construction using the fund are likely to be in London.

The Build to Rent fund assists developers overcome front-loaded payments which may be necessary before private investors in a scheme come on board. Developers will then repay or pass on the loan when new investors are found.