As part of its first build-to-rent scheme, the UK’s biggest landlord is aiming to “play a significant role” in the residential sector by paying £13.7 million for 100 units in East London.

Newcastle-based property firm Grainger, which also owns rental property in Germany, is taking on the units – built by developer Bouygues Development - in Barking in order to create a viable build-to-rent sector in the UK.

Grainger will then let the units to tenants, as well as acting as property and asset manager.

The firm has begun this initiative to play a larger role in the private rental market in light of the difficulties faced with obtaining a mortgage.

Commenting on the scheme, Nick Jopling, Executive Director for Property at Grainger, said: “Our acquisition of this build-to-rent block from Bouygues is a significant milestone for the private rented sector, putting into place a new template for the creation of purpose-built high quality and professionally managed rental accommodation.

“This is a sector that desperately needs to grow in order to meet the demands of the UK population and is supported at the highest levels of Government, and we believe this style of residential development has huge potential to grow in the company.”

Grainger manages £3 billion of residential assets in the UK and Germany at present and it is expanding its proposition with the proposed acquisition of a further site in Aldershot, Hampshire.

John Beresford, Grainger’s Lead Development Director for the scheme, added: “We are pleased to submit this major planning application which, if approved, will help revitalise and improve Aldershot as a whole.

“By working closely with the community, the council, the MoD, HCA and other stakeholders, we believe our proposal will bring long-term economic benefits to the wider Aldershot community, while providing much-needed new homes, new schools and fantastic green open spaces and amenities.”