Pension funds set to build private rented housing

Large investment funds are in talks with the government to build blocks of private rented housing in the South-east of England.

According to the Times, pension funds Aviva and Legal & General are ready to invest money in purpose-built rented housing units for people priced out of the buying market.

Aviva has already submitted plans to the government in collaboration with CB Richard Ellis and a US property manager to build rental homes in the South-east. Legal & General is reported to be in talks with the government over the construction of up to 100 build-to-let homes.

Kerslake: "This is part of the answer to the housing crisis"

The buildings will be constructed by UK companies and are likely to be apartment blocks, according to the Times.

Sir Bob Kerslake, chief executive of the Homes and Communities Agency, told the newspaper: “This is part of the answer to the housing crisis. Aviva are the kind of big institutional investor we have been aiming to bring into the private rented sector. The consortium is one of a number of strong responses we have had to our expressions of interest process.”