Private rent deal to unlock £400M of development

New £400M deal will boost housing in Birmingham, Leeds and Manchester, creating 2,000 new homes.

Housing Minister Gavin Barwell has announced the latest private rental deal, which will boost housing in Birmingham, Manchester and Leeds, providing more than 2,000 homes and thousands of jobs.

The £400M of development, under the government’s programme to increase investment in purpose built rental properties, will increase the amount of good quality rental homes.

A total of £45M of funding will come from the government’s new Home Building Fund, which makes money available to help kick-start new developments and housebuilding.

A total of 995 homes will be built in Manchester, 744 in Leeds and 323 in Birmingham, with national developer Danhara Group spearheading the project, with the support from the government’s housing delivery agency, the Homes and Communities Agency, and banking giant HSBC.

Housing and Planning Minister Gavin Barwell said: “Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone.

“This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester – it will create jobs and opportunities for many hundreds of people.

Sir Edward Lister, HCA Chairman, said: “This massive investment, one of the largest private rented deals this year, shows our determination to get builders building and substantially grow the market in this country.

“We’re working on a number of other deals, with builders of all sizes, and we’re also using our investment and land to attract new entrants to the industry.”

An estimated 1,500 new construction jobs could be created across the three cities, with the government determined to provide opportunities in all parts of the country in  a deal which will provide a boost for many businesses across the Northern Powerhouse and Midlands Engine.

Last week’s Autumn Statement outlined £7.2Bn of investment in housing, setting out a comprehensive set of housing measures that will address the needs of different people, ensuring the housing market works for everyone and not just the privileged few.

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