The property industry today welcomed Housing Minister Grant Shapps’ announcement that Whitehall could release enough land from its control to build 100,000 homes, but urged Government to work with large investors such as pension funds to help ease the nation’s housing crisis.

If central and local Government were to work with large investors, one of the few groups with the resources available, new homes to rent could be developed on a large scale. It has been reported that well-known pension funds and insurance companies, stand ready to invest up to £1bn each in building homes for rent.

“However, Government must give consideration to who has the resources available to get on and build these homes, particularly while banks are still nervous about lending.

“Institutional investors have access to the scale of funding needed to develop first-rate homes to rent, and central and local Government, through its planning powers and capacity to release land can ensure that such schemes become reality.”