The government has endorsed the Montague Review’s recommendations for the private rented sector as part of a package of measures aimed at kickstarting the housing market.
Proposals for an equity fund to enable the initial construction phase of PRS schemes, the establishment of a taskforce for the sector, a £10bn debt guarantee scheme and the waiving of affordable housing contributions for projects with viability issues were among the measures announced by prime minister David Cameron and communities secretary Eric Pickles.
The government said it would set aside £200m to help get private rented schemes off the ground, with the funding expected to help leverage match funding from the private sector.
The taskforce will bring together developers, management bodies and investors to deliver more rented homes, a statement from community secretary Pickles said.
A £10bn debt guarantee scheme would enable investors to borrow cheaply on the back of the government’s “hard-earned fiscal credibility” he added.
Expressions of interest were invited from Friday.
Cameron said: “The measures announced show this government is serious about rolling its sleeves up and doing all it can to kickstart 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.”
The changes were broadly welcomed by the property industry, with long-term PRS advocate and Grainger executive property director Nick Jopling describing them as good news for the market and better news for renters.
But Savills head of funding and development Andrew Brentnall said they just “scratched the surface” of the sector’s potential.
jack.sidders@estatesgazette.com
