Essential Living has secured a £60 million loan deal from RBS and HSBC to finance the first modular build to rent (BTR) scheme in the UK.

The four-year agreement will result in 249 new homes being built in Greenwich.

Designed by Assael Architecture, the 23-storey Creekside Wharf scheme involves building a block designed exclusively for families, featuring buggy storage, noise insulation and an on-site crèche.

In addition, a quarter of the apartments will be made 'affordable'. The development is the first housing development to include discount market-rented apartments, which are now set to be rolled out more widely under plans announced by London Mayor Sadiq Khan.

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Scott Hammond, managing director at Essential Living, said: "The market is continuing to grow more comfortable with the emerging build to rent business model, and we are delighted to have finalised the debt position to bring forward one of our landmark developments.

"Against a backdrop of global uncertainty, we believe the defensive nature of residential investment will become increasingly attractive to investors and lenders."

Chiara Zuccon, Head of Private Rented Sector at RBS, said: "We're committed to supporting the UK's housing agenda and building homes that are purpose built for rent has an important role to play in increasing and diversifying the country's housing supply.

"We believe Creekside Wharf, with its provision of affordable housing and its innovative use of modular construction, will be another standout scheme that will greatly enhance the local community and provide much needed rental housing at a range of price-points."

(LM/MH)