A deal has been agreed between housing minister Brandon Lewis and a subsidiary of asset management firm Venn Partners. Under the agreement, PRS Operations Ltd (PRSO) will provide up to £3.5 billion, which will then be offered to landlords as government-backed loans to fund the construction of homes for private rental.
In order to be eligible for to receive a loan, landlords must be looking to invest a minimum of £10m in private rented sector homes.
PRSO is a newly created organisation made specifically for the purpose of securing institutional investment in building homes for private rent. The initial £3.5 billion could later be expanded to £6.5 billion.
Brandon Lewis said, “This is an exciting and important move that will help strengthen the private rented sector so that it meets the needs of tenants well into the future.”
Venn Partners were chosen following a highly competitive public procurement tender that received several strong bids. Paul House, a managing partner of Venn Partners, said, “Attracting significant institutional investment to the private rented sector, which is now England’s second largest housing tenure, is critical to underpin its further expansion, improve standards and tenant choice, and help increase the supply of new, purpose built homes to help address the UK’s overall housing needs.”