The government has responded to calls to help the private rented sector grow to meet demand by pledging additional funding to those building brand new homes for landlord insurance customers to invest in.
As part of the Budget announced by the chancellor George Osborne today (March 20th), it was announced that the build-to-let pot would be swelled to help construction companies up their spending on new projects.
In December, it was revealed by housing minister Mark Prisk that £200 million would be made available to help boost the number of homes in the private sector and meet the desperate need for additional housing to cope with the levels of demand.
However, the British Property Foundation (BPF) among others has pushed Mr Osborne in recent weeks to up this funding, adding that there is a need for British people in general to realise that the desire to always own a home is an outdated notion.
And now the chancellor has taken the opportunity at his yearly Budget announcement to reveal that this will be increased to £1 billion. This is an extra £800 million on top of the amount previously in place, meaning there will be a far higher likelihood of a swell in new properties being built specifically for renting.
The move has been welcomed by professionals, and Ian Fletcher, director of policy at the BPF, said: "It's encouraging the government's confidence in build to rent has been reciprocated and we are delighted to see that the equity funding was heavily oversubscribed. Working in partnership with government the sector should deliver an exciting and quality array of homes for renters."
Other moves for the property market in the Budget were also positive, with the chancellor announcing that the NewBuy scheme, which would be popular among those looking to get a first foot on the housing ladder, will now also be extended to cover those movers who are struggling to buy a second home because they have a small deposit.