What is the Private Rented Sector Initiative?

 This is a brand new new initiative, which aims to create a long term funding model for the large scale provision of private new build and intermediate rented housing.  The initial focus will be on London and the South East. 

 Who will provide the funding?

Institutional investors, such as pension funds, will be encouraged to invest for the first time together, to 'pre-purchase' a percentage of homes to be built.  Estimates of a £500 million plus fund eventually being created have been given.

Will this help housebuilders?

Yes, because they will be able to sell a percentage of new developments 'off plan' to these investors.  This will reduce the speculative nature of their business, providing an early cash injection and reducing the likely borrowing requirements to fund the rest of the development.

Who is co-ordinating the initiative?

The HCA has appointed specialist property advisors DTZ as consultants, to handle and advise how the initiative can be developed.  DTZ are dealing with all enquiries.

Will this take a long time to get off the ground?

No.  Expressions of interest, including proposed levels of investment, are to be submitted by 1st June 2009.  A shortlist of 'bidders', and possible investment models, will be assessed by mid June 2009, with feasibilities and preparation through the Summer leading to a launch date by Autumn 2009.

Focal research can provide you with information on every facet of the social housing sector; whether Newbuild, Refurbishment, or Maintenance; England, Scotland, Wales, Northern Ireland; RSL, Local Authority or ALMO.

To review this market intelligence for yourself, please contact Rob Norcott, UK Sales Director, for an appointment.