In September 2014 the Communities Secretary, Eric Pickles, launched a new £400m programme to try to encourage the building of new rental homes. Under the scheme, housing associations can bid for a share of the £400m fund to build up to 10,000 new homes across the country. It is thought that the building programme which is due to take place from 2015 to 2018 will comprise mostly one and two bedroom apartments.
Once the homes are built, landlords must make them available for rent at below market rates for a minimum of seven years. The idea behind this initiative is to give tenants the opportunity to save for a deposit to enable them to purchase their own home. Tenants will have first refusal to buy the property at the end of the seven year period.
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