Private Rented Sector
The scheme aims to accelerate the growth of investment in the private rented sector by institutional investors, through the creation of a government guaranteed bond programme that will be used to finance longer term loans to eligible PRS operators.
Background to the scheme
In September 2012 the government announced that it would offer up to £10 billion of debt guarantees to support the development of new housing. £3.5 billion was allocated to the affordable housing sector, £3.5 billion to the private rented sector and the remaining £3 billion is held in reserve to be used by either.
The purpose of the private rented sector scheme is to unlock new investment by institutional investors to increase the supply of new, purpose built and professionally managed private rented sector homes, which will help improve standards and increase choice for tenants.
To be eligible, properties must be completed and have a value over £10 million. Please consult the Scheme Rules for more details.
ARA Venn’s role
ARA Venn is responsible for establishing and managing the scheme, including the origination, underwriting and on-going management of the loans, in addition to developing and managing a government guaranteed bond programme to efficiently fund them.
The licence to operate the scheme is held by ARA Venn’s wholly owned subsidiary PRS Operations Ltd, with all loans and bonds being carried out through a further subsidiary, PRS Finance Plc.
PRS Finance Plc operates a bond issuance programme from which it issues bonds that match the maturities of the loans that it makes to borrowers. The bonds are unconditionally and irrevocably guaranteed by the Secretary of State for Housing, Communities and Local Government, and are rated by Moody’s Investor Services Limited in line with its credit rating for the UK Government.
Please contact us at moc.nnev-aranull@srp or call +44 (0)20 7073 9350 with any other enquiries about the scheme.