Out-Law / Your Daily Need-To-Know

Hopkins announces West London 'build to rent' deal

Out-Law News | 14 Apr 2014 | 2:35 pm |

Inland Homes will receive £8.7 million of funding for the delivery of 123 homes for private rent under the UK government's 'build to rent' scheme, housing minister Kris Hopkins has announced.

The homes will be constructed on a site in West Drayton in the London Borough of Hillingdon. It is part of the wider Drayton garden village development which includes a total of 773 new homes, a nursing home and commercial premises. Work is expected to start on site in July.

The government set up the build to rent fund in 2012 to cut risk for developers looking to invest in homes built specifically for private rent. The scheme gives management companies the chance to invest in new rental developments and developers can then repay the government investment. Chancellor George Osborne increased the fund from £200m to £1 billion in the 2013 Budget.

"With easy access to both central London and Heathrow Airport, there is clear demand for good quality private rented homes in West Drayton," said Hopkins in a statement. "So I’m pleased to announce this new deal which will lead to 123 new homes through our build to rent scheme, as part of the wider Drayton garden village development."

Inland Homes chief executive Stephen Wicks welcomed the deal. "We are delighted to have secured this funding. We are confident that by applying Inland’s expertise in planning and development we can help to shape local communities and stimulate new private housing supply, which in turn will attract new institutional investment into the private rental sector," he said.