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80% of government's £1bn rented home fund goes to London

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80% of government's £1bn rented home fund goes to London

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Published by Max Salsbury for 24dash.com in Central Government and also in Development, Finance, Housing

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Image: Housing via Shutterstock

A property agent has complained that 80% of a £1 billion government fund to create new rented homes has gone to London.

Ajay Jagota, of North East firm KIS Lettings, reacted after Housing Minister Kris Hopkins announced a list of projects set for a slice of the build-to-rent fund.

Of the 6,500 homes planned for construction using the government cash, 80% will be in London, and none of the 37 projects set to benefit from the fund will be in the North East.

Mr Jagota fears the government risks overlooking both the North East as a region and the "increasing importance of rented homes in the UK housing market".

He said: “The government’s press release announcing this funding was titled ‘tenants to get better choice of newly-built homes to rent’ but they forgot to add ‘as long as they live in London’.

“In fact, the nearest place to the North East to receive build to rent cash is Kirklees, over 120 miles away. It’s not as if we don’t need the rented homes – the numbers of North Easterners who live in rented homes has actually trebled in 10 years as homeownership has fallen to its lowest level in a quarter of a century.

“I’m a big fan of the help to buy scheme, but while that scheme sees the government offering £3.7bn to help people buy homes when home ownership is falling, they’re providing four times less to help them rent them when more people than ever before are doing that.

“Any measures designed to accelerate home building are to be welcomed, but private renting is the fastest growing area of the UK housing market and the government must not overlook its growing role in supporting the country’s housing need and wider importance in other areas of our economy.”

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