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Builder commits to HCA initiative

The Berkeley Group has become the first housebuilder to commit to the Homes and Communities Agency's (HCA) private rented sector initiative.

Funding worth £46.5 million will be directed towards the construction group, allowing it to build 1,778 new homes in the south of England.

As part of the conditions of the funding, the HCA will establish the Private Rental Fund, which will purchase a total of 555 homes to be retained for rent on the open market.

The HCA will then hold a 20 per cent interest in the fund's value.

Liz Peace, chief executive from the British Property Federation, said that the group has "long campaigned for the government to encourage institutions and property companies to invest in the private rented sector".

She added: "The private rented sector has an important role to play in meeting the nation's housing needs. While mortgage lending remains restricted, more people are choosing to rent, and large housebuilders and institutional investors should be encouraged to meet this demand with quality homes to rent." ADNFCR-1898-ID-800053350-ADNFCR

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