The UK’s largest landlord has invested for the first time in a build-to-rent scheme.
Grainger, also known as a social housing provider, will pay £13.7m to Bouygues Development for a 100-home block in Barking, east London.
It has paid a 10% deposit, with the rest due on completion in 2015. The homes will then deliver rental income to Grainger, which has declared its aim to grow its private rented sector portfolio.
Its move follows last summer’s Montague Report, which called for more institutional investment in private rental stock and suggested a new role for social housing organisations.
Nick Jopling, executive director of property at Grainger, said: “Our acquisition of this build-to-rent block from Bouygues is a significant milestone for the private rented sector, putting into place a new template for the creation of purpose-built high-quality and professionally managed rental accommodation.
“This is a sector that desperately needs to grow in order to meet the demands of the UK population and is supported at the highest levels of government, and we believe that this style of residential development has huge potential to grow in the coming years.”