Second round of Build to Let homes scheme launched
Mon 16th September 2013, 2:39 pm
The government has launched the second round of its Build to Let scheme to encourage the building of homes for private rent.
The Build to Let scheme will see firms compete for a share of £400 million in loans and government equity shares to help enable development.
The £700 million first round of the scheme, which is being run by government quango the Homes and Communities Agency, was launched last year with the first deal signed in July as part of Southampton’s Centenary Quay development.
HCA chief executive Andy Rose, said: “The private rented sector has a key role to play in increasing the supply of new homes. There was strong appetite the first time round and we are looking forward to seeing an even higher level of interest and quality of proposition this time.”
The HCA said that due diligence is currently being completed on the schemes shortlisted under the first round, with that process set to be completed next month.
Housing minister Mark Prisk said the Built to Let scheme, along with up to £10 billion in government housing guarantees, would encourage people to invest in this “untapped” private rental market.
As with the first scheme, the second round will focus on sites of more than 100 homes, in order to make them attractive to long-term institutional investors.
The deadline for bids is 31 October, with shortlisted schemes due to be announced early next year.
View the Build to Let round two prospectus
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