The government is to underwrite debt for institutional investors in the private sector under plans to be announced by prime minister David Cameron today.
The £10bn scheme will enable providers to raise debt with a government guarantee when they commit to investing in new-build rental housing.
From tomorrow the government will invite expressions of interest for the scheme.
The announcement came as part of a wide-ranging package of measures aimed at stimulating the housing market and following recommendations made by Sir Adrian Montagu as part of his recently published review of institutional investment in the private rented sector.
The package announced by Cameron includes the removal of planning restrictions to unlock 75,000 homes currently stalled due to affordable housing requirements.
Developers will be able to waive these requirements where they are found to make schemes unviable.
The housing underwriting scheme will be delivered through the Infrastructure Bill, which will include guarantees of up to £40bn for major infrastructure projects.
Cameron said: “The measures announced today show this government is serious about rolling its sleeves up and doing it all it can to kick-start the economy. Some of the proposals are controversial; others have been a long time in coming. But along with our housing strategy, they provide a comprehensive plan to unleash one of the biggest homebuilding programmes this country has seen in a generation. That means more investment around the county, more jobs for our people, and more young families able to realise their dreams and get on the housing ladder.”
jack.sidders@estatesgazette.com
