Govt announces 'funding boost of £3.5bn for new homes'
Last week, housing minister Brandon Lewis revealed that he had signed a new agreement to make £3.5 billion in funding available to build new homes in the private rented sector (PRS) across the country.The government will be working with PRS Operations Limited, a subsidiary of Venn Partners LLP, as part of its wider efforts to improve and expand the sector. The agreement will complement the housing guarantee scheme, which enables landlords of new homes to use a guarantee to secure long-term financing.This new funding pot will boost the supply of purpose-built, professionally-managed homes in the PRS, providing tenants with the opportunity to take their pick of quality properties.Initially, landlords will be able to take advantage of up to £3.5 billion in government-backed loans if they are planning on investing at least £10 million in the construction of new homes. They will then have the option of increasing the finance to £6.5 billion in the future.PRS Operations has been launched by Venn Partners to secure institutional investment in building homes specifically for the PRS. Once it has arranged the funding, it will offer a series of smaller loans to eligible landlords that are looking to expand into this market.The construction of new houses is an integral part of the government's long-term economic plan, meaning this agreement is important. The new deal is part of a package of investment measures to help generate growth in the PRS, while ensuring the maximum value is gained for taxpayers.Mr Lewis commented: "We’ve pulled out all the stops to get the country building since 2010, including by creating a bigger better private rented sector."This is an exciting and important move that will help strengthen the private rented sector so that it meets the needs of tenants well into the future. But this wouldn’t have been possible without the tough economic decisions we’ve had to make to restore confidence in our economy, and it’s this strong record that has unlocked this funding."The package of investment measures introduced by the government includes the £3.5 billion affordable housing guarantees scheme, the £1 billion Build to Rent Fund and the Private Rented Sector Taskforce.
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