First rental deal yields hundreds of new homes
Housing Minister Mark Prisk welcomes the first deal under the government’s £1 billion Build to Rent scheme.
A Southampton quayside development will today (24 July, 2013) be the first to benefit from a government scheme to build homes specifically for private rent.
Housing Minister Mark Prisk today welcomed the first deal under the Government’s £1 billion Build to Rent scheme, to deliver homes private rent as part of a 1,600-home development at the Centenary Quay development.
He said today’s announcement was a clear example of government-led efforts to build a bigger, better private rented sector to give tenants greater choice.
Homes for private rent
The £500 million Centenary Quay project will transform the former Vosper Thorneycroft marine works in Southampton, to offer a total of 1,600 homes as well as shops, cafés and a new supermarket.
Today’s Build to Rent deal forms part of a £7.5 million package to help deliver 230 of the homes on the site – 102 of which will be available for private rent.
Once the 102 homes for private rent are completed, developers Crest Nicholson will then sell them to the A2 Dominion Group who will let and manage them as the landlord.
Housing Minister Mark Prisk said:
We’re determined to build a bigger and better private rented sector that gives tenants a wide choice of good quality homes.
That’s why I’m delighted that the Centenary Quay development in Southampton will be the first to receive funding through our Build to Rent scheme, to deliver 102 homes for rent in the heart of Southampton.
I look forward to seeing these new homes, and meeting the new tenants as they move into this exciting new development.
Chief Executive of the Homes and Communities Agency Andy Rose said:
Southampton’s Centenary Quay is the first Build to Rent scheme to enter contract. This is great news, stimulating new private rented housing supply and leading to opportunities for new investment in the area.
Centenary Quay is an extremely important and exciting project. We have already seen success in the first phase of the project and the next phase will see hundreds more houses being built, transforming a former redundant shipyard into somewhere people want to live and work.
Chris Tinker, Executive Director of the developer Crest Nicholson said:
We are delighted that we have been able to work with the Homes and Communities Agency and Southampton City Council to secure this Build to Rent funding both to enable us to broaden the housing offer at Centenary Quay and to increase the rate of delivery of much-needed housing at this time.
Cllr Warwick Payne, Southampton City Council’s Cabinet Member for Housing and Sustainability, said:
This is great news for the city. Centenary Quay is a model of excellence in partnership working between the Homes and Communities Agency, Crest and the council, and this new funding highlights the benefits of this joint approach for the city.
Centenary Quay is already helping to meet affordable housing need locally, as well as offering good opportunities for home ownership. This new funding will ensure quality private rented homes in a vibrant location for a significant number of residents.
Notes to editors
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The Build to Rent fund is managed by the Homes and Communities Agency, which has already invested significantly in this phase of the Centenary Quay project.
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Alongside £3.5 million from the Build to Rent fund to deliver 102 homes for private rent, the government has also made £2 million affordable homes funding available to deliver 72 affordable homes and given a loan of £1.96 million from the Get Britain Building fund to support a further 56 homes on the site.
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