HCA announces build to rent round 2 shortlist
The Homes and Communities Agency has announced the launch of the second phase of its build to rent scheme, which is designed to deliver homes specifically for private rental.Housing minister Kris Hopkins has published a shortlist of developments in areas such as London, Manchester, Liverpool and Kirklees, which could benefit from £1 billion of funding to build private rental properties. Up to 6,500 homes will be built using the additional money, contributing to the government's pledge to deliver up to 10,000 newly built homes for private rent by 2015.The government's investment is intended to pave the way for private sector investment in the sector by demonstrating the viability of the large-scale market.Some 18 projects are currently either in the final stage of due diligence or contracting stage from the first phase of the project. Half of these are in London, with others in Durham, Liverpool and Birmingham. Two build to rent developments, in Manchester and Southampton, have already begun.The 36 shortlisted phase two projects will now go through a due diligence process, with successful bids receiving funding. Around 80 per cent of projects are located in London, reflecting the strong demand for private rental accommodation that exists in the capital.Housing minister Kris Hopkins said: "The Build to Rent fund will give tenants far more choice over where they live and raise the standard of the properties on offer."So I'm pleased that so many developers have applied for a share of our £1 billion fund, and that we are well on track to have work underway by 2015 on 10,000 new homes specifically for private rent."London mayor Boris Johnson said the most ambitious targets in the Greater London Authority's history have been set to meet demand from a rising population.He said increasing the supply of private rental accommodation will create a more balanced rental market, bring forward development and ultimately help to stimulate economic growth.
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