Backers of 45 major private rental building projects, a quarter of which are for London, can now go forward for final due diligence checks ahead of the cash being released to build up to 10,000 homes.

It marks the Government’s first step towards its goal of creating a more balanced rental market and has seen a mix of house builders, social housing providers and contractors win project backing.

Those with schemes include: Countryside, Carillion, Keepmoat, Kier, Lend Lease, Mount Anvil, Muse, Persimmon and Taylor Wimpey.

Projects going forward in the first round have the potential, subject to due diligence, to deliver between 8,000 and 10,000 homes.

A second round of bids for the remaining £300m funding is expected to open later this year and will be handled by the Homes and Communities Agency.

Housing Minister Mark Prisk said: “This government is determined to get Britain building, and the Build to Rent Fund is set to help us deliver, with up to 10,000 new homes to be built from these projects.

“We’ve seen overwhelming demand for the fund, and it’s become clear that there’s a real appetite for rental investment. We want to support that, which is why we’ve made a £1bn Budget boost to the fund.

“Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs.”