The government has announced that it is now looking for bids for a part of a new fund that will allow for homes to be built specifically for landlord insurance customers to put straight into the rental market, allowing them to tap into areas of the market previously under utilised.
The latest wave is part of a £1 billion fund announced by the government earlier this year, and will see some £400 million up for grabs for the new constructions.
It comes after the first project funded by the previous wave of bidding was begun in Southampton. The work at Centenary Quay in the Hampshire city is already underway, and it is hoped that this will see hundreds of homes being brought into the private rented sector in the next few months.
This funding was brought about to help landlords increase their stock, as well as to encourage more big companies to get into the sector and work as corporate landlords, helping to add a greater level of competition.
Housing minister Mark Prisk said it would help to bring about a far greater level of choice for tenants across the country in where they live. He also said that successful bids for the Build to Rent funding would have a focus on longer-term contracts.
A shift in sentiment among tenants has meant that far more residents now want the chance to live in properties they are renting for a greater length of time. This has been fuelled by the fact there are now more families in rented homes, as well as the change in beliefs among residents - many now say that home ownership is not their main goal in life, as it was for the previous generation.
Mr Prisk added: "The housing market is turning the corner, with starts up a third compared to last year, and over 25,000 households helped into home ownership since 2010. But I want to go further, which is why I’m inviting bids for a share of up to half a billion pounds to help build a bigger, better private rented sector."