Liverpool City Council has approved plans for a private equity fund to be established to pay for 1,000 new homes for rent to be built over the next three years.
The agreement opens the way for additional development sites to be allocated to Regeneration Liverpool, the joint venture between local authority asset-backed vehicle specialist Sigma Inpartnership and the council.
Sigma Capital, which owns Sigma Inpartnership, is in the process of putting together a major private equity fund for the construction of new private rental houses throughout the North West and Midlands – a large portion of which will be built in the Liverpool area.
Graeme Hogg, director of Sigma Capital, said: "Our fund will deliver significant numbers of homes to the mayoral target in Liverpool, starting with an initial investment in Norris Green and at the former Queen Mary School site.
"In order to accelerate delivery, we were looking to the council for more geographic diversity of sites, so we are extremely pleased that the paper was approved for the addition of another 1,000 new homes. We can start to set the wheels in motion for what will ultimately have a major and positive impact on the rental housing market in the city."
Cllr Ann O'Byrne, member for housing, said: "This new fund will give our work a real boost, bringing in much-needed investment in our private rented sector. It will support the mayor's pledge to build 5,000 new homes in this city over the next three years. And it will mean many more people in this city will be able to look forward to moving into new, high quality homes."