Up to 6,500 homes will be built using the next tranche of funding worth around £400m.

The 36 projects on the round two shortlist will now go through a due diligence process run by the Homes and Communities Agency.

They include:

• Housing Capital Trust – plan to build over 500 homes for rent in Manchester
• Stanley Dock Properties – Over 100 homes for rent in Liverpool
• Imperial West – 192 homes for private rent in Hammersmith and Fulham
• Development Securities – 350 homes for rent across Brent, Greenwich and Redbridge

Around 80% of the projects listed are in London – reflecting the demand for good quality, private rented accommodation in the Capital.

The latest round of bids puts the Government well on track to have work underway by 2015 to deliver up to 10,000 newly built homes for private rent.

The Build to Rent fund is designed to help developers build large scale, quality homes specifically for the private rented sector.

Through round one of the scheme, 18 projects are either in the final stage of due diligence or contracting stage, with around half of these projects in London but also in places including Durham, Liverpool and Birmingham.

Construction has also already started on two Build to Rent developments in Southampton and Manchester.

Housing Minister Kris Hopkins said: “The private rented sector offers a flexible option to millions of people looking to rent good quality homes.

“So I’m pleased that so many developers have applied for a share of our £1bn fund, and that we are well on track to have work underway by 2015 on 10,000 new homes specifically for private rent.”

Build to Rent round 2 shortlist