Cable announces investment deal for 6,600 private rented sector homes

Cable said in a statement that sites for the first phase comprising around 2,000 homes have been identified in Greater Manchester and Liverpool.

The £700 million investment deal has been facilitated by the Regeneration Investment Organisation which has been set up by UK Trade and Investment to direct investors to development opportunities across the UK.

"The UK’s inward investment is booming, growing by 11% last year alone," said Cable. "We want to be even more ambitious and make sure that any new investment is spread right across the country - not just in London and the south east."

"By ensuring each region has access to good finance opportunities, UKTI’s Regeneration Investment Organisation will help all the UK’s regions fulfil their full potential, helping to build a stronger economy and a fairer society," Cable said.

"We have developed an innovative joint venture model designed to deliver high quality homes in areas of the country where rental housing is in extremely short supply," said Sigma chief executive Graham Barnet.

"Gatehouse has substantial knowledge of and expertise in the UK property market and has shared our vision for this project. I am delighted that we are now working together to deliver the roll-out of our model, which has the potential to create one of the largest new-build privately rented residential portfolios in the UK," Barnet said.

"Expanding into the residential market, particularly in the UK, is a significant milestone for Gatehouse Bank," said Gatehouse Bank chairman Fahed Boodai. "We are seeking investment opportunities in mature and stable markets. This joint venture with Sigma breaks new ground in the UK residential sector and will help to deliver thousands of much needed high quality new homes for rent across the country," Boodai added.