Housing Minister Kris Hopkins today (4 April 2014) welcomed a deal that will get nearly 500 homes built specifically for private rent.
This is the fourth deal under the government’s £1 billion Build to Rent scheme - and the largest to date.
Overall through this innovative new fund, work will be underway on 10,000 new homes for private rent by 2015.
New homes in and around the capital
Under the terms of the deal, Genesis Housing Association will receive £45.5 million to build 485 homes for private rent across 4 sites in London and Chelmsford. The homes will be a mix of 1, 2, and 3-bedroom properties.
- 244 homes at the former Anglia Ruskin University site in Chelmsford – including 130 1-bedroom and 113 2-bedroom properties
- 196 homes at Grahame Park, Barnet – including 22 three-bedroom properties
- 25 homes at Madeley Road, Ealing
- 20 homes at Springboard House, Newham
In each case, Build to Rent homes will form part of wider developments, with affordable housing and home ownership schemes including Help to Buy also available.
Building homes for rent
The Build to Rent fund is designed to help developers build quality homes specifically for the private rented sector. Construction is already underway on 2 Round 1 projects in Southampton and Manchester, and last week a third deal was signed which will lead to 190 homes for private rent across 6 different sites.
Housing Minister Kris Hopkins said:
With millions looking to live in and around London, there is a real demand for good quality homes available to rent on flexible terms.
Today’s Build to Rent deal is our fourth and the largest to date. It will deliver nearly 500 homes on sites across the capital and in Chelmsford, offering greater choice for tenants.
And with more sites being considered as part of this £1 billion scheme, we’re looking to get even more homes built specifically for rent across the country.
The Mayor of London, Boris Johnson, said:
With London’s population soaring, and to help address a 30-year failure to build enough homes, we have set the most ambitious house-building targets in City Hall history. The private rented sector has a huge part to play in this. More well-designed, good quality homes to rent will help rebalance the capital’s rental market, improve services for tenants and stimulate new development and economic growth as well as providing the new homes that hardworking Londoners so desperately need.
Margaret Allen, Interim Executive Director of Programmes and Recoverable Investment at the Homes and Communities Agency, said:
This is the largest build to rent scheme we’ve contracted to date and demonstrates that there is an appetite to deliver build to rent on a large scale. It is good to work with Genesis Housing Association who have a long term commitment to providing homes for private rent. There are now over 1,000 homes under contract to be delivered through Build to Rent.
John Carleton, Executive Director of Markets and Portfolio at Genesis Housing Association said:
We are delighted to be partnering with the government to deliver a much-needed supply of high quality housing in London and Chelmsford via the Build to Rent programme. It will broaden the diverse range of housing solutions that Genesis offers to people from all walks of life.
The Build to Rent scheme has been heavily oversubscribed by developers, and is well on track to deliver up to 10,000 newly-built homes.
This is the fourth contract to be signed under Round 1 of the Build to Rent scheme; a shortlist of 36 bids for Round 2 of the scheme was announced on 5 March 2014.
These projects could deliver up to 6,500 homes for rent.