Housing Minister Mark Prisk is injecting at least £400 million worth of Government funds to encourage people to invest in the ‘untapped’ private rented sector to stimulate greater choice and quality of homes for tenants.
The scheme looks to improve conditions for tenants, with an emphasis on longer term tenancies and higher property standards to accommodate a growing demographic of people who are renting properties.
However, the scheme – Build to Rent – is not only aimed at benefitting tenants. Other than the obvious economic incentives landlords will receive in terms of money supplied to successful bids to build homes specifically for private rent, the construction industry can expect to enjoy a cash injection to build these homes.
As such the private rented sector can officially be considered an important aspect of the overall economy in many areas that are experiencing difficult times because of the current climate.
Housing Minister, Mark Prisk said of the scheme:
“This funding, combined with £10 billion in our housing guarantees schemes, will help build on successes like Centenary Quay in Southampton to offer greater choice and quality for tenants across the country.”
Boris Johnson, Mayor of London also views the scheme as an important addition to the under-serviced private rented sector in London:
“With around a quarter of Londoners living in private rented accommodation, demand in this sector has the potential to support the construction of tens of thousands of the new homes the capital desperately needs.”
You can read the full press release with additional comments from Prisk, Johnson, Andrew Standford (Chairman of the Private Rented Sector taskforce), and Andy Rose (Chief Executive of the Homes and Communities Agency) by following the link below: