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The HCA's Private Rental Sector Initiative (PRSI) is designed to attract institutional investors, such as UK pension and overseas funds that have not traditionally been involved in residential letting, into the market at scale for the first time. Used to fund the building of new homes specifically for private rent, it could help relieve pressure on the housing market by kickstarting stalled developments, as well as make private rental an option of choice for consumers in the future.
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Submissions to the expression of interest process, launched by the HCA last month, have been received from household name UK pension funds and other investors, property developers, fund managers, housing associations and property managers. The HCA and its advisor DTZ are now evaluating the submissions with a view to encouraging organisations to come together to create investment propositions with scale.
Chief Executive of the HCA, Sir Bob Kerslake, said: "This response, and the sector's wider support for our initiative, has validated the early market testing which told us there is an opportunity here to do something different.
"To maintain momentum and make the most of the current favourable market conditions we now intend to move quickly to take these submissions to the next stage, evaluating deliverability and the value for money they offer, and in particular to encouraging parties to come together. We will also step up our work to identify a pipeline of product for investors – homes on HCA schemes and other developments across the country.
"We are still in the early stages of this initiative, but interest has been encouraging and shows the potential it has to ease some of the effects of the market downturn on developers and turn private rental into an option of choice for consumers in the future."
(CD/JM)
