A new deal signed today will deliver newly-built homes specifically for private rent in 6 different towns, Housing Minister Kris Hopkins said today (28 March 2014).
The minister welcomed this third deal through the government’s £1 billion Build to Rent scheme, which is on track for work on 10,000 new homes for private rent to be underway by 2015.
Building to rent
Under the terms of today’s deal, the Mill Group will receive £8.7 million to work alongside Bovis Homes to deliver 190 homes for private rent.
The team will build 110 houses and 80 apartments across 6 different sites. They are:
- Wickhurst Green, Horsham – 46 homes
- Charlton Hayes, Filton, Bristol – 43 homes
- Coopers Edge, Brockworth – 31 homes
- Oak Tree Place, Hedge End, Southampton, Hampshire – 30 homes
- Great Kneighton, Trumpington, Cambridge – 27 homes
- Aspen Park, Hemel Hempstead – 13 homes
The Build to Rent fund is designed to help developers build large scale, quality homes specifically for the private rented sector. By demonstrating the viability of the large-scale market the government is laying the foundations for future private investment in the sector.
Construction has already started in 2 Round 1 projects, in Manchester and Southampton and 17 more are either in the final stage of due diligence or the contracting stage.
And through Round 2, a further 36 projects have been shortlisted which could deliver up to 6,500 homes – meaning the government is well on track to have work underway by 2015 to deliver up to 10,000 newly built homes for private rent.
Housing Minister Kris Hopkins said:
Millions of people use the flexible option of renting in the private sector. I want to ensure tenants have a choice of high-quality homes, rented under reasonable terms.
So I’m pleased that this deal is complete to build 190 homes across 6 sites specifically for private rent.
And with more sites being considered for a share of our £1 billion Build to Rent fund, we’re well on track to have work underway on 10,000 homes for rent by 2015.
Margaret Allen, Interim Executive Director of programmes and recoverable investment at the Homes and Communities Agency, said:
This investment in the private rented sector is a good example of innovative partnership working using the Build to Rent programme. When complete it will provide private rented choice alongside market sale homes in 6 areas where there is a high demand for homes.
David Toplas, Chief Executive at Mill Group, said:
This new joint venture forms a key part of our strategy to build a significant private rented sector portfolio and demonstrate our commitment to structure, source, finance and invest in the right opportunities.
There is a significant, well recognised shortage of homes and an ever-growing need for good quality, affordable rental accommodation, and this deal will help tackle that. We are delighted to play our part to encourage greater institutional investor participation, ultimately helping spur an increase in supply of private rental homes.
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 third 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.
Work is already underway on homes specifically for private rent as part of the Centenary Quay development in Southampton, and the Ancoats development in Manchester.