Schroders is planning a move into key worker housing.
Head of property William Hill said Schroders was in talks with local authorities and housing providers about a number of intermediate residential opportunities in Greater London.
Investments would be made through Schroders’ Real Income Fund. Local authorities would contribute the land, while the fund would finance development.
The homes would be rented to key workers for an agreed period of up to 15 years and then sold, vacant, to the open market.
The surplus above an agreed hurdle would be shared between the fund and land provider.
Schroders expects total returns to exceed 7%, compared with less than 5% for private market rented housing
