The government has announced that 36 schemes have qualified for the second round of its Build to Rent fund, with developments in Kirklees, Liverpool, London and Manchester among those to benefit.
Up to 6,500 private rented homes will be built using funding of around £400m, on top of the schemes chosen for the £700m first round of the scheme.
They include schemes proposed by clients including Canary Wharf Group, Development Securities, Essential Living and Manchester City Council (see file attached for the full list).
Kier Projects and Morgan Sindall urban regeneration arm Muse are among the project leaders to be shortlisted.
The Build to Rent fund is designed to help developers build large-scale quality homes specifically for the private rented sector.
The government said that, through the £700m first round 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 Birmingham, Durham and Liverpool.
Construction has also already started on two Build to Rent developments in Manchester and Southampton.
Build to Rent to help tackle housing crisis
Former housing minister Mark Prisk has said emulating “modern mobile cities” such as in Germany, where the numbers of homeowners and renters are more balanced, is the best way to tackle the housing crisis.
The Conservative MP said that while he supported market incentives such as Help to Buy, the government scheme would not solve the housing crisis alone.
Speaking at a British Property Federation conference, Mr Prisk said: “Even if all the money is used for the Help to Buy scheme, it will still only help 75,000 households.”
He added: “[Help to Buy] is not going to reverse this underlying, longer-term [gap] between homeownership and renting, particularly not in our cities.”
Mr Prisk pointed to the £1.1bn Build to Rent fund, which was jointly launched in 2012 by the government and Homes and Communities Agency, as a route into PRS for the private sector.
A total of 45 schemes were selected to share a £700m pot in April under the Homes and Communities Agency-managed fund. Bids were invited for the second £400m round in September and are due to be announced this month.
Shadow planning minister Roberta Blackman-Woods stressed the need to give consumers choice between homeownership and PRS and to ensure vulnerable tenants were not subject to low-standard PRS properties.
She urged industry to respond to the Labour-commissioned Lyons Housing Review, the focus of which includes looking at ways to increase institutional investment in PRS.
The 36 projects on today’s shortlist from round two will also now go through this due diligence process, with successful bids receiving funding to deliver new homes.
- Housing Capital Trust – which plans to build more than 500 homes for rent in Manchester;
- Stanley Dock Properties – which plans to build more than 100 homes for rent in Liverpool;
- Imperial West – which plans to build 192 homes for private rent in Hammersmith and Fulham; and
- Development Securities – which plans to build nearly 350 homes for rent across Brent, Greenwich and Redbridge
Around 80 per cent of the projects listed are in London.
Housing minister Kris Hopkins 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.
“I’m pleased that so many developers have applied for a share of our £1bn fund, and that we are well on track to have work under way by 2015 on 10,000 new homes specifically for private rent.”
Homes and Communities Agency interim executive director for programmes and recoverable investment Margaret Allen said: ‘’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.”
The shortlisted clients were:
Essential Living (Archway); QDD Athletes Village UK (for SVDP); BDW Trading; Colliers Wood Investments; Pinnacle Developments (NW)
Canary Wharf Group; Imperial West; Grainger; Development Securities
Stanley Dock Properties; Housing Capital Trust; Carlton Group developments; Maurice Investments; Spenhill Regeneration; Apache Capital Partners
Essential Living (3CL); Orbit Homes (2020); Kier Project Investment; Woking Housing Partnership; CS Developments (Manchester);
LQ Developments; Essential Living (Helix); Manchester City Council; BY Development; Binks Developments
Castlefield Developments (Manchester); Steel Green; Hurst Street; London Legacy Development Corporation
Coplan Estates; Greater London Authority; Essential Living (Swiss Cottage); Newington Butts Developments; Dolphin Square Charitable Foundation; Muse Developments