A new investment commitment of up to £70 million is expected to support the delivery of additional family rental housing developments across the UK.
The National Housing Bank, part of Homes England, has committed the funding to a residential investment programme established by Fiera Real Estate and Packaged Living.
The investment will support the Fiera Real Estate Single Family Housing (FRESH) fund, which aims to develop a portfolio exceeding £1 billion in professionally managed family rental properties.
The fund has reached £200 million of investment capacity, supported by an initial £51 million investment from the National Housing Bank and commitments from private institutional investors.
A further £19 million commitment from the Bank is expected to become available as the investment platform expands.
The programme will focus on supporting newly constructed family homes in locations where demand for housing exceeds available supply.
Funding will be provided through arrangements with residential developers and housebuilders, helping to bring forward developments and improve access to construction finance.
The initiative is part of wider efforts to encourage institutional investment into the UK housing market and increase the delivery of new residential accommodation.
For housebuilders, additional investment into the rental housing sector could provide another route to financing and delivering residential developments.
The approach also offers potential opportunities for contractors and suppliers working across housing construction, building materials, mechanical and electrical services, and energy-efficient building systems.
The National Housing Bank’s participation demonstrates the growing role of partnerships between public finance institutions and private investors in supporting the UK’s housing delivery ambitions.
Original source: National Housing Bank and Homes England