The Build To Rent initiative - whereby financial and other institutions bank-roll the building of blocks of apartments and then keep ownership and manage the letting of individual units - has taken a huge step forward with the unlocking' of £3.5 billion of funding.
A deal between the government and PRS Operations Limited, a subsidiary of Venn Partners LLP, has been signed by housing minister Brandon Lewis.
The government's private rented sector housing guarantee scheme enables landlords of new rented homes to use a government guarantee to secure long-term financing. This is purposely aimed at boosting the supply of purpose built, professionally managed private rental homes - which will, of course, compete with letting agents and buy-to-let landlords who have until now been the backbone of the private rented sector.
This £3.5 billion in government-backed loans will be made available to institutional landlords looking to invest at least £10m for new homes available for private rent.
Venn Partners has created PRS Operations Ltd specifically for the Build To Rent initiative.