Demand for dedicated private rental properties is going up with 1 in 5 people expected to choose private rental living across England by 2040.
Development of private rental homes is steadily increasing but there is still huge potential for this area of the market to flourish especially with funding opportunities like Build to Rent and the PRS housing guarantee scheme.
We have already covered the Build to Rent fund but to make sure you don’t miss out on potential funding through the PRS housing guarantee scheme we have highlighted what you need to know below.
What is the PRS housing guarantee scheme?
The PRS housing guarantee scheme was launched in September 2012 and consists of more than £3.5bn in available funds backed by the government. The funding consists of bonds which are issued by investment company Venn Partners, the next of which will be around £150m and will be made available by the end of the financial year.
How does this differ from the Build to Rent fund?
The Build to Rent fund is a government loan for the building element of a PRS development whereas the PRS housing guarantee scheme is more aimed at the ongoing costs of managing the development after it has been built. The two types of funding can be used on the same development however the Build to Rent funds must be paid back to the government before access to the PRS housing guarantee funding is made available. It is important to note that the eligibility criteria is different for both schemes so it may be that access is granted for one fund but not the other.
Who is eligible for the scheme?
The PRS housing guarantee scheme is available through a bidding process to developers of dedicated private rental properties that fit the following criteria:
- New PRS properties that have not already started construction when the application was submitted.
- Developments with a minimum value of £10m (can consist of numerous sites which add up to £10m).
- Only properties in the UK
How to apply
To access funding from the PRS housing guarantee scheme you will need to request an application form from the Venn Partners website at www.venn-partners.com/prs.
Further details and eligibility criteria can be accessed via the Department for Communities and Local Government website.
Please Note: Every care was taken to ensure the information in this article was correct at the time of publication. Any written guidance provided does not replace the reader’s professional judgement and any construction project should comply with the relevant Building Regulations or applicable technical standards. However, for the most up to date LABC Warranty technical guidance please refer to your Risk Management Surveyor and the latest version of the LABC Warranty technical manual.