28 Nov 2013
Policy area: Residential
Momentum behind Build-to-Rent development in the UK today received an encouraging boost as Shariah investment bank Gatehouse committed £700 million to Sigma Capital Group's development of 6,600 privately rented homes across the North West.
The joint venture, facilitated through UK Trade and Investment's recently unveiled Regeneration Investment Organisation (RIO), will finance an initial 2,000 homes over 90 acres of land, for which 22 sites have already been identified. Once fully developed, the portfolio can expand to 6,600.
The British Property Federation (BPF) welcomed the scheme today as another step in ensuring the UK's housing stock is able to meet demand in the coming decades; stakeholders are expanding their horizons to realise the attractiveness of a Build-to-Rent portfolio, and the UK remains open for business to overseas investments which fund construction of our homes.
Ian Fletcher, director of policy at the BPF, said: "This £700m investment is a hugely welcome development, and illustrates that Build-to-Rent projects, as long as they receive local backing, are workable outside London and the South East. Crucially for these developments, Liverpool and Salford City Councils have provided support in order to allow the schemes to go ahead.
“Furthermore this announcement is a fitting backdrop to today’s launch of the RIO. Hopefully this project will signal only the first of many such investments as the Government continues to market essential foreign investment opportunities in UK housing."