The largest build to rent development in the UK has received a huge boost in funding from the Government. The biggest development of homes built specifically for private rent will receive a windfall totalling some £65million.
It is no secret that the country is currently undergoing a crisis in the housing market with a shortage of homes being built. The UK desperately needs over a million new homes in the foreseeable future and it turns out that the Government sees Build to Rent as a great solution believing the initiative can provide a significant number of them, particularly in the likes of the capital.
A development of 7,600 high quality homes at the Wembley Park development, one of the largest strategic regeneration projects in the UK, is set to receive the multi-million pound boost. Alok Sharma, the UK Housing minister, believes that the development will offer more choice for Londoners and will boast at least 6,800 new homes to rent. The minister also claimed that it highlights Government plans to broaden the choice of rental properties available on the market and will help those unable to buy to move forward.
With the move to provide the country with more rental homes, there will also be changes to planning rules so local authorities will proactively prepare for more Build to Rent homes where required. It will then become easier for Build to Rent developers to offer affordable private rent in place of other types of affordable homes.
Such plans will also include introducing longer tenancies which are more family friendly to provide better security for renters and Government action in that area has already overseen the offer of at least three year tenancies being made available to some 35,000 tenants up and down the country. Homes built purposely under the Build to Rent scheme are done so at scale for the sole purpose of being rented long term and the Housing Minister has explained such homes can boost choice and quality within the private rented sector. The industry estimates that investment within this sector could grow to as high as £70 billion within the next five years. This would help to provide a further 15,000 homes each year with the potential to reach at least 240,000 homes built specifically for private rent by 2030.
Regardless of whether they rent or own, families should be able to have the security they need to plan for the future. Plans to fix the broken housing market are essential, and it is pleasing to see the Government taking action to create a bigger and better private rental market and supporting new Build to Rent developments so tenants are afforded a wider variety of choice.
The Wembley Park development has been backed by a loan stemming from the £3 billion Home Building Fund provided by the Government. The development will be delivered in stages across the next seven years. The flats built will be a mix of studios, one, two and three bedroom properties, all situated closely to the underground station. In addition to his, the site next to the England National Team will also include up to 2,350 affordable homes.