Housing minister Gavin Barwell has said Manchester, Leeds and Birmingham will together receive £45 million of funding to build thousands of new rental homes
The money will be provided by the government’s new £3 billion Home Building Fund, which was announced by communities secretary Sajid Javid at the Conservative Party Conference in October.
According to the government, the private rental sector (PRS) deal will unlock £400 million of development and create 2,062 rental homes – 995 in Manchester, 744 in Leeds and 323 in Birmingham.
The projects are being led by developer Dandara Group with backing from the Homes and Communities Agency and HSBC.
Dandara is working with Hodder+Partners on the Leeds development – a long-awaited 744-home scheme in Holbeck Urban Village, which has been on the drawing board since the economic downturn.
Barwell said: ‘Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone.
‘This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester, it will create jobs and opportunities for many hundreds of people.’
Barwell also estimated that the funding would create up to 1,500 new construction jobs across the three cities.
Dan Tynan, founder and chairman of Dandara
‘We have already built more than 2,500 properties of this type in the last 10 years in the UK, including Scotland’s largest PRS scheme of almost 300 properties in Aberdeen, acquired by LaSalle Investment Management on behalf of a large pension fund.
‘We are now in a position to actively work with institutions, and independently, to make a sizeable contribution to this market.’