New UK Housing Fund to be launched

According to Inside Housing, a new UK housing fund is set to be created by a global asset management company and one of the country’s largest housing associations.

On the 9th of January, Inside Housing reported that Homes England (the government’s housing delivery body) has been making recommendations to the government. They have recommended that the government takes an equity investment into a brand new UK housing fund. This fund is to be launched by BMO Global Asset Management, also know as BMOREP. This would be in partnership with the association, Home Group.

Who is BMOREP?

BMOREP, formerly known as F&C REIT, is a property fund and asset management company based in London. It is a subsidiary of BMO Global Asset Management who operate in the North of America; and manage funds worth over $263 billion.

BMOREP is a specialist in property and managing assets. Of the £6.2 billion clients they have in Europe, they also run funds all over the continent.

One of their biggest funds is within the UK. UK Property Funds is worth around £532 million. Investments include offices, retail and warehouses; this is as well as standard retail properties and car show rooms.

What will the fund do?

The fund is understandably going to be used to deliver new properties all across the country. However, there is little detail about the overall plan currently. It is unknown how many houses there will be, how big the fund will be and the types of properties will be built.

On top of this, Inside Housing have stated that BMOREP and Home Group are unable to comment on these funds. Although, BMOREP has stated that announcements will follow in the following weeks.

Homes England

According to Inside Housing, Homes England have given an indication that thee plans could be tailored towards the private rental sector. The weekly trade publication spoke to a spokesman at Homes England who stated that the private rented sector has the potential for renters and property investors. He also stated it was important to fulfil both as the country needs these homes.

Back in October, Homes England’s investment committee had a meeting which concluded on the recommendation that MHCLG should take an equity investment from BMO.

Although, with the general election, this has prevented MHCLG from deciding on agreeing to back the fund. But, November saw Chief Executive of Homes England, Nick Walkley, the decision from MHCLG wasn’t expected until after the general election.

Inside Housing however published that MHCLG are still considering this decision.

Home Group

For those who were unaware, Home Group work with 220 UK local authorities across England and Scotland. They help provide houses and integrated housing for health and social care services. Back in the financial year of 2018/19, they had a turnover of £367 million; and they had a surplus of £47 million.

Reading Home Group’s aims and objectives for the future, they aim to build 10,000 homes in 2022.

Home England (part of the Home Group) was one of the first ever housing associations; From this they managed to secure £85 million to build 2,300 homes by March 2022.

Jess Mitchell

I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.

About Sophia 68 Articles
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.

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