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Trio of PRS schemes gain funding

Trio of PRS schemes gain funding

The construction of over 2,000 new private rental scheme (PRS) apartments in Birmingham, Salford and Leeds has taken a step forward after funding was secured for the project. 

Developer Dandara Group has secured £440 million of funding from HSBC and the Homes and Communities Agency - via the government's Home Building Fund - for the plan, which will be its first foray into PRS schemes outside London.

The Isle of Man-based firm will now be partnering with Sir Robert McAlpine, Interserve and Galliford Try to deliver the three projects, with work starting early next year and scheduled to be completed in 2019. Around 1,500 construction jobs will be created in the three cities.

Salford will see the largest development, with 995 homes being built by Sir Robert McAlpine in four blocks next to the Lowry Hotel on Chapel Wharf.

In Leeds, 744 homes will be constructed in the Holbeck Urban Village, a redevelopment of an area of former industrial land just south of the city centre, while in Birmingham, 323 homes will be built near the Crowne Plaza hotel on Holliday Street. All three sites will be easily accessed by public transport, being close to Salford Central, Leeds and Birmingham New Street stations respectively. The Salford development is also within walking distance of Manchester city centre and close to the Middlewood Locks mixed-use development.

Housing minister Gavin Barwell said: "This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester - it will create jobs and opportunities for many hundreds of people."

It marks the latest advance in the development of PRS schemes in regional cities, with Greater Manchester in particular seeing significant growth in this area.

However, Leeds and Birmingham are catching up, with the Yorkshire city recently seeing residential landlord Grainger buying up a city centre plot for a PRS scheme involving 242 flats in an 18-storey tower.

The 4.6-acre site once housed the newspaper offices for the Yorkshire Post and the Yorkshire Evening Post.

Image: iStock

 

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