A £200m investment fund to accelerate the building of new high quality homes for private rent has been launched.

The Build to Rent Fund, announced today, will invest equity or loan finance in a range of viable projects in England where there is both local demand and support for new private rented housing. By focusing on larger proposals (including portfolios of sites), with 100 new, privately rented units or more, the fund will accelerate development and attract new investors into the sector.

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The Fund could be used to cover development costs such as land, construction or management costs. Once the development is complete and fully let, the developer will refinance or sell on its interest and repay the finance back to government.

HCA Chief Executive Pat Ritchie said: "The private rented sector is already home for a significant number of people, including young professionals and families, and demand for this type of housing is rising. We want to see people having the opportunity to choose their housing options, of which private rented is a growing and vital part.

"This programme will increase and accelerate the building of quality and well-managed private rented homes, as well as encouraging long-term institutional investors to the sector which will in turn unlock greater capacity in the housing market."

(CD)