BPF welcomes detail of £10bn private rented sector debt guarantee
- Published on Friday, 01 February 2013 16:08
- Posted by Vicki Mitchem
The Government this afternoon unveiled further detail of the £10bn debt guarantee scheme that will give investors access to cheap finance to build homes for rent, a move welcomed by the British Property Federation.
The private rented sector guarantee will support both new-build and the conversion of commercial space with a minimum value of £10m into homes for rent, that will have to remain in the private rented sector until the money is paid back.
A separate scheme will be available to support up to 15,000 new affordable homes, on top of the government's existing house-building programmes.
Liz Peace, chief executive of the British Property Federation, said: "We welcome the pace at which the Government has brought this scheme to market. Clearly the detail will be important, but the mere fact the Government is offering this kind of support to build-to-let, shows its confidence in the sector, and we hope that proves infectious, building on the momentum of investment the sector has already seen in 2013.
"Significant strides have been made to put the various different elements of the Montague Review in place, with an equity fund, debt guarantees and task force in various stages of development. There is, however, one major area which is outstanding and critical to creating sustained investment in the sector and that is planning.
"Without clarity on its planning treatment local authorities and investors will be cautious about build-to-let. The Government will have the opportunity to clarify this over the summer as the Taylor Review requires new guidance to be drafted and we look forward to dialogue on that."