Bovis Homes has signed two separate private rented sector deals to build 510 homes across sites in the North and South of England and the Midlands.
The housebuilder aims to build 250 of the homes in 2014, with the remaining 260 delivered in 2015.
One of the transactions will access funding through the government’s Build to Rent fund, which was set up by the government in 2012 to stimulate housebuilding in PRS.
The first transaction includes 190 homes in the south on Bovis Homes’ larger sites, where PRS would deliver stronger returns, instead of the group selling plots to increase its capital turnover (sales/working capital), it said.
Bovis Homes has partnered with an investor for the first deal and has provided around £1m for a 27 per cent equity as well as a £4m additional loan.
The second transaction involves 320 new homes on sites mainly in the Midlands and North, allowing Bovis Homes to increase trading on some of its older sites.
Bovis Homes, chief executive David Ritchie, said: “We are delighted to have agreed these two private rental sector deals which will provide the opportunity to deliver over 500 additional new homes during 2014 and 2015.
“Through achieving this, Bovis Homes is accelerating delivery across a number of its existing housing sites and enhancing shareholder returns.”