Plans to encourage pension funds to invest in private rented housing have been unveiled by the Homes and Communities Agency (HCA).

The Government’s recently formed ‘super agency’ is responding to a two-year campaign led by the British Property Federation (BPF) to shift housing policy towards the rental sector. The announcement will focus around gauging expressions of interest which will then be taken forward in late May and worked up into pilots.

Around eight organisations have reportedly been in talks with the HCA over building rented accommodation, and therefore supporting builders during the housing market recovery. The project could see thousands of new homes built for long-term rent.

Ian Fletcher, BPF’s residential director, said: “It’s great that policy makers are alert to the need to continue to expand the private rented sector and support development through these difficult times. But it’s vital we look at what we can do to make the numbers stack up. It’s now or the never for the professional rented sector and it’s essential that ministers do not loose sight of the opportunities here.”