RESIDENTIAL Landlord Essential Living has become the first company to receive funding from the second phase of the government’s build-to-rent fund, paving the way for three private rented sector developments in London and the south east.
The company said today it had secured a three-year £51.6m loan from the Royal Bank of Scotland and the government’s Homes and Communities Agency (HCA) to help fund schemes in Maidenhead, Archway and Bethnal Green, creating 300 homes.
The first properties will be available for rent in early 2016.
Build-to-Rent was intended to meet soaring demand for private rental properties from people unable to afford to buy. It was first announced by George Osborne in his 2012 Autumn Statement, with funding extended from £700m to £1.1bn this year.
Essential Living, which secured £150m of institutional backing from M3 Capital Partners last year, intends to build 5,000 homes for rent across the south east.
“There’s a genuine need for the old-style housing market to be disrupted,” chief executive, Darryl Flay, said.