The Build To Rent initiative pioneered by the government has taken another step forward with the announcement of a multi-million pound deal to provide nearly 800 homes in Manchester and Salford.
Developers Renaker will receive £55 million to build 779 new homes across two sites.
Each will include a mix of one, two and three-bedroom properties. Work is already underway, and is expected to be completed by the middle of next year.
The government's BTR scheme aims to build 10,000 new homes, exclusively for private rent.
Build To Rent is the industry term for the practice whereby institutional investors (not always ones with track records in the residential sector) fund the construction of blocks of apartments. Instead of selling units, as has been the trend for decades, investors retain ownership but them let them out directly or through agencies.
Only one per cent of the UK's private rented housing stock is currently owned by institutions. In the US it's 13 per cent in the US, in Germany it's 17 per cent. The total is 23 per cent in Switzerland and 37 per cent in the Netherlands, according to data firm IPD.
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