Nearly 500 homes are to be built specifically for private rent as part of a new deal under the government’s Build to Rent scheme.

Genesis Housing Association will receive £45.5 million to produce a mix of one, two, and three-bedroom residential properties across four sites in London and the surrounding area.

A total of 485 homes for private rent will be erected, including 244 at the former Anglia Ruskin University site in Chelmsford.

Grahame Park in Barnet will become home to 196 new properties, while Madeley Road in Ealing and Springboard House in Newham will receive 25 and 20 new properties respectively.

Housing Minister Kris Hopkins has welcomed the deal, which is the fourth and largest to date under the £1 billion scheme.

“With millions looking to live in and around London, there is a real demand for good quality homes available to rent on flexible terms,” he said.

“The deal will deliver nearly 500 homes on sites across the capital and in Chelmsford, offering greater choice for tenants.

“And with more sites being considered as part of this £1 billion scheme, we’re looking to get even more homes built specifically for rent across the country.”

Stephanie McMahon, Head of Research at Strutt & Parker, comments: “The demand for homes within the private rented sector is one of the starkest trends in today’s housing market. Between 2001 and 2011, the number of households in private rented increased by 89% to 16.5% of all tenures – a trend expected to continue to be 37% of all tenures by 2025.

“There is a need for a properly regulated and managed delivery of housing to support the demand and as such we welcome the delivery of new homes. To truly make a difference, however, more land needs to be made available for long-term private rented development.”

Each of the new sites will form part of wider developments, with affordable housing and home ownership schemes including Help to Buy also available.

Overall, the Build to Rent fund aims to have work underway on 10,000 new homes for private rent nationwide by 2015.

Construction has already begun on two Round One projects in Southampton and Manchester, while last week a third deal was signed which will lead to 190 homes for private rent across six different sites.

“With London’s population soaring, and to help address a 30-year failure to build enough homes, we have set the most ambitious house-building targets in City Hall history,” commented the Mayor of London Boris Johnson.

“The private rented sector has a huge part to play in this. More well-designed, good quality homes to rent will help rebalance the capital’s rental market, improve services for tenants and stimulate new development and economic growth as well as providing the new homes that hardworking Londoners so desperately need.”