The government as part of an agreement with Venn Partners, a credit asset management firm, have agreed to provide £3.5 billion in funding for the private rented sector.
Housing minister Brandon Lewis unveiled the plan as part of a wider strategy to get the country building with the monies initially being available to individuals looking to invest at least £10 million in building new properties.
The government hopes by commissioning new homes it will stimulate economic growth and ease the UK housing crisis, with the private rental sector being particularly stretched.
Mr Lewis explained that “we’ve pulled out all the stops to get the country building since 2010, including by creating a bigger better private rented sector”.