The Royal Bank of Scotland (RBS) has committed £1billion of capital to support the development of thousands of private rented sector (PRS) homes across the UK.
According to the AJ’s sister title Construction News, the huge cash injection into PRS could precipitate a glut of new schemes as developers look to take a slice of the burgeoning rental market.
RBS said it had received increased demand from developers and operators looking to build and manage purpose-built rental schemes, amid a growing appetite from institutional investors looking to enter PRS.
Essential Living Vantage Point residential development Archway
It is hoped the £1billion will increase the number of rental homes built across the country, helping the government achieve its ambition to build a million homes by 2020.
RBS’s Chiara Zuccon has been named as head of PRS and will work within the bank’s real estate finance team in a newly created role. She will lead the team and work with companies that are looking to develop large-scale purpose-built private rental schemes.
RBS head of residential development Phil Hooper said: ’Building new homes, purpose-built for rent, is an important step in increasing and diversifying the UK’s housing supply.
’We are already providing financing support to a number of leading developers and look forward to working with other sponsors across the country.
’RBS is fully committed to supporting the UK’s housing provision and the £1billion we are committing to PRS is in addition to the £2bn per annum we provide to support the development of homes for sale.’
Essential Living managing director Scott Hammond said: ’RBS was one of the first major funders to recognise the strategic advantages of developing a dedicated, purpose-built rental market and Chiara’s appointment is a further demonstration of their long-term commitment to the PRS market.
’We’ve worked closely with Chiara and the wider RBS residential team on the three developments in London and the South-east and throughout the process. Their sector expertise and flexibility has been invaluable in getting over a number of hurdles as we look forward to these schemes coming to market.’