Pidgley takes Berkeley into rented housing

Aaron Morby 8 years ago
Share

Veteran house builder Tony Pidgley is diversifying into building and owning affordable rented homes.

The chairman of Berkeley Group said the house builder was setting up a rented housing fund to build 380 homes next year.

This is Berkeley Group’s second foray into a homes for rent deal and comes after Chancellor George Osborne unveiled plans to offer grants for rental homes pegged at 80% of the market rate.

Pidgley said the move would help finish sites as buyer demand slowed and take advantage of the new Government funding initiative.

Berkeley’s first rental scheme was built under the Housing and Communities Agency’s private rental initiative, which sees the agency retain a 20% stake in the homes.

This latest deal is being set up with a council and will see Berkeley own and manage the homes.

Pidgley predicted that more developers would follow as long as mortgages remained hard to secure and rents remained high because of housing shortages.

He said: “The industry has got to change its approach. The days of a house builder buying it, building it, selling it and walking away are, I think, gone.

“If the sites don’t get developed there will be no homes. So what we’re saying to local authorities is that we’ll lock them in and we’ll rent them at a discount. It’s just a private sector company doing what the RSLs do.”

Latest news

Laing O’Rourke director killed in car crash on way to work

Tributes to Caroline Blackman who died early on Wednesday morning en route to Hinkley
2 days ago

Kier cutting jobs on Highways England contract

More than 100 workers facing redundancy across Midlands Area 9
2 days ago

Buckingham confirmed for £120m Swansea arena

Six months of pre-construction work to now get underway
1 day ago

Two North West smart motorway projects delayed

Costain and Galliford Try jobs put back by more than a year
2 days ago

Lendlease wins £8bn Thamesmead development

Morgan Sindall beaten in race for 11,500 home site
2 days ago

Government pledges £80m for Dawlish sea wall project

South Devon railway sea wall will be rebuilt and increased in height by 2.5m
2 days ago

30 jobs lost as Yorkshire precast firm collapses

Rippon-based Ebor Concretes placed in administration
2 days ago

Go-ahead for 200-home Cardiff build-to-rent scheme

Work to start on central Cardiff scheme this summer
3 days ago

Balfour renews £220m London Tube track upkeep

Four-year term will start in April with option to extend by six years
3 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
10 months ago

Bouygues paid £21m not to build Garden Bridge

Transport for London documents detail £53.5m wasted on doomed crossing
3 days ago

Government signs off £250m for major housing projects

Deal to release £157m for housing infrastructure in Cumbria and Devon
3 days ago

Beetham Tower owner faces £4m reclad bill

Owner will have to foot remedial facade works bill in wake of Carillion collapse
3 days ago

WYG profit warning sees share price crash 40%

Consultant back in talks with lenders over breaching banking covenants
3 days ago

United Living hires former Wates business director

Michael Holling takes role as northern and Midlands operations director after 24 years at Wates
3 days ago

Union demands death benefits for all construction workers

Unite says lack of employer-paid cover should be as unacceptable as not wearing a hard hat on site
3 days ago

Scaffold collapse on school misses kids by metres

Court hears how untied scaffold fell into Welsh school
4 days ago

Galliford Try construction hit by more Aberdeen bypass losses

Another £26m hit on bypass plunges construction into red in first half
4 days ago

Council terminates Lakehouse school contract

Willmott Dixon takes over site hit by "performance and project delays"
4 days ago

Government infrastructure pipeline needs reality check

Call for Treasury to drop project 'wishlist' for certain Pledged Projects List
4 days ago

Council seeks partner for Birmingham Ladywood Estate

Major regeneration plans at Ladywood and Perry Bar to boost city's housing stock
4 days ago

Willmott Dixon wins £21m Wakefield swimming pool

Work to start next month on Pontefract Park leisure centre
4 days ago

Weston and Tesco plan to turn store site into 1,400 homes

Application set to go in for major mixed-use development in east London
4 days ago

Network Rail unveils major operational shake-up

Devolved operating model moves from eight to 13 routes
4 days ago

Subcontractors wanted across Nottingham

Big name contractors and clients looking to boost supply chains: Register now for Meet the Buyer event
4 days ago

Bidding starts for £18m Helensburgh leisure centre

Argyll and Bute Council hopes to start work on seafront leisure centre and swimming pool this year
4 days ago

Interserve ‘fit for growth’ director exits

Dougie Sutherland merged UK and International construction businesses
5 days ago

Rail minister says HS2 doubts are “complete nonsense”

Government says its commitment to construction of the full route is "undiminished"
5 days ago

Go-ahead for Manchester Airport beauty group hub

Three contractors chase £31m deal for The Hut Group studio
5 days ago

Drink driver careers through roadworks

Jailed driver was three times over the limit when he crashed into a construction vehicle
5 days ago

Contractor services