RBS unveils £1bn capital support for purpose-built PRS schemes
The funding, to take place over the next 12-18 months, is a sign of the bank’s recognition of the growing importance these developments have in providing an alternative quality housing option.
Amid a growing appetite from institutional investors looking to establish PRS as a viable asset class, RBS has seen an increased demand from developers and operators looking to build and manage purpose-built rental schemes in the UK, replicating models found in the US and Europe.
Phil Hooper, RBS head of residential development, said: “Building new homes, purpose built for rent, is an important step in increasing and diversifying the UK’s housing supply. We are already providing financing support to a number of leading developers and look forward to working with other sponsors across the country.
“RBS is fully committed to supporting the UK’s housing provision and the £1bn we are committing to PRS is in addition to the £2bn per annum we provide to support the development of homes for sale.”
RBS also announced a newly created role of head of Private Rented Sector. Chiara Zuccon will lead the bank’s UK-wide team dedicated to supporting its institutional customers looking to develop large scale purpose-built private rental schemes.
Last year, RBS and England’s Homes & Communities Agency (HCA) provided the development finance to Essential Living to create three dedicated rental developments in Maidenhead, Archway and Bethnal Green creating 300 homes, with the first properties available for rent in mid 2016. The transaction won the Estates Gazette 2015 Award for the “Real Estate Deal of the Year for Industry Impact”.
Scott Hammond, managing director, Essential Living, said: “RBS was one of the first major funders to recognise the strategic advantages of developing a dedicated, purpose-built rental market and Chiara’s appointment is a further demonstration of their long term commitment to the PRS market.”