£45.5m Build to Rent deal agreed with Genesis Housing

The largest deal to date under the government’s Build to Rent deal has been signed with Genesis Housing Association. The agreement, the fourth under the government funding scheme, will support 485 homes being built in Chelmsford, Barnet, Newham and Ealing.

In each case, the built to rent homes will be part of mixed projects, alongside social rented housing(the lamentable phrase “affordable homes” is still being used in the press release) and homes built for open market sale.

The majority of the homes will be at the former Anglia Ruskin University site in Chelmsford, where Genesis plans 130 one bed and 113 two bed homes. At Grahame Park in Barnet there will be 196 homes, of which it is promised 22 will be three bed homes. There will be 25 units in Ealing and 20 in Newham.

London mayor Boris Johnson commented: “With London’s population soaring, and to help address a 30-year failure to build enough homes, we have set the most ambitious house-building targets in City Hall history. The private rented sector has a huge part to play in this. More well-designed, good quality homes to rent will help rebalance the capital’s rental market, improve services for tenants and stimulate new development and economic growth as well as providing the new homes that hardworking Londoners so desperately need.”

Build to Rent eventually promises £1 billion of lending to the private rented sector, in a series of loans that the government is providing to pump prime the PRS. The money is advanced on a site specific basis, and only on the proviso that it will be repaid with subsequent institutional investment, once the homes are fully rented. A

Until today, two projects in Southampton and Manchester are under way with Build to Rent support, while a third scheme covering 190 homes was signed last week. This will see Mill Group buying homes delivered by housebuilder Bovis Homes, and received an £8.77m advance. More on that here. These projects are from the first round of projects submitted for financial support. A second round of 36 further submissions was received earlier this year.

John Carleton of Genesis commented: “We are delighted to be partnering with the government to deliver a much-needed supply of high quality housing in London and Chelmsford via the Build to Rent programme. It will broaden the diverse range of housing solutions that Genesis offers to people from all walks of life.”

 

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