The government’s newly established National Housing Bank will help to fund 3,300 build-to-rent homes in a link-up with Homes England and Aviva.

The first sites in Liverpool and Manchester will see 300 high quality family homes for rent in underinvested urban areas in a boost to regional economies and communities, using an initial £100 million cash injection.

These high quality, low energy rental homes will target lower to middle income working families, on developments with good commuting links and social infrastructure.

The government first launched a build-to-rent fund back in 2012 - a fully recoverable investment where it shared risk or bridged finance to help schemes to be built, managed and let. However, this is the first time it has launched a joint investment model with an institutional investor, with the focus on family housing rather than just flats.

Supported

This investment is one of the first to be supported by the National Housing Bank - part of Homes England – which will use flexible, government‑backed finance across funds, platforms and partnerships to unlock housing and regeneration projects, along with private capital.

Approximately 150 homes will be delivered in Manchester’s Moston Lane, with over a third flagged as affordable, while 135 homes will be built in Vescock Street, part of Liverpool’s new town ambitions.

Example

James Stevens, head of global real estate equity at Aviva Investors, says it’s a great example of collaboration to deliver a dynamic and exciting new platform. “The UK living sector is a core focus for our real estate strategy, with our ambition to allocate over 25% of our overall real estate portfolio to it in the next three years,” explains Stevens.

Property consultancy Knight Frank reports that investors have pumped almost £40 billion into the UK’s BTR market during the last ten years. The supply of new BTR homes jumped from less than 1,000 in 2004 to almost 90,000 in large cities in 2024 - 14% of new homes, according to Centre for Cities.

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