Mill Group is the majority owner of the joint venture and working with Bovis Homes has secured bank funding for the scheme.

The homes will be built in phases over the next 18 months in Cambridge, Bristol, Gloucester, Southampton, Horsham and Hemel Hempstead.

These homes, which will comprise 110 houses and 80 flats, will then be asset managed by Investors in Homes Management Ltd, Mill Group’s asset management outfit.

The Homes and Communities Agency has also provided £9m funding for the transaction as part of the Build to Rent Fund.

Housing Minister Kris Hopkins said: “Millions of people use the flexible option of renting in the private sector. I want to ensure tenants have a choice of high-quality homes, rented under reasonable terms.

“So I’m pleased that this deal is complete to build 190 homes across six sites specifically for private rent.

“And with more sites being considered for a share of our £1billion Build to Rent fund, we’re well on track to have work underway on 10,000 homes for rent by 2015.”

David Ritchie, Chief Executive of Bovis Homes said “We are delighted to have agreed to supply 190 of our new homes to the consortium, in which we hold a minor stake.

“Through achieving this, Bovis Homes is accelerating delivery across a number of its key housing sites thus enhancing shareholder returns.”

David Toplas, Chief Executive of Mill Group, said: “This new joint venture forms a key part of our strategy to build a significant PRS portfolio and demonstrate our commitment to structure, source, finance and invest in the right opportunities.”