New Private Rental Homes Receive Funding Boost
The number of property lettings Norwich has could increase thanks to a new round of funding from the government to support the construction of more homes for private rent around the UK.
A new agreement has been signed with PRS Operations to unlock £3.5 billion in funding to help establish a bigger private rented sector, with government-backed loans to be made available to those landlords keen to invest a minimum of £10 million for new properties.
The government’s housing guarantee scheme for the private rented sector allows landlords renting out new homes to make use of a guarantee to secure long-term financing, an investment designed to increase the supply of private rental homes and give tenants greater choice when it comes to good quality dwellings.
“Investment in housing is essential for the future of an economy. That’s why for the first time in a generation, this government plans to directly commission homes, as well increasing investment in affordable housing to ensure the delivery of 275,000 affordable homes over the next five years. These guarantees will help to deliver more homes in communities across Britain,” chief secretary to the Treasury Danny Alexander remarked.
This comes as a new scheme has been launched to offer 100,000 first-time buyers the chance to invest with a 20 per cent discount, with those interested invited to register via the Starter Home initiative from the beginning of 2015.
Part of the development includes a change to the planning system in order to allow house builders to develop unviable or under-used brownfield land, freeing them from levies and planning costs.