The funding package will help to provide 7,600 new, high-quality homes at the Wembley Park development in Brent, north London, of which at least 6,800 will be for rent.
The government loan will also be matched by housing developer Quintain to provide £130m in infrastructure investment into Wembley Park for new car parking, an energy centre and the first phase of the new seven-acre public park.
Alok Sharma, housing and planning minister, said: “Whether renting or owning, all families should have the security they need to be able to plan for the future.
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“That’s why as part of our plan to fix the broken housing market we’ve been taking action to create a bigger and better private rental market, supporting new build-to-rent developments, so that tenants can have greater choice.
“Developments like Wembley Park are a great example of doing just that, boosting the choice and quality of homes on the market – meeting the needs of renters in cities and towns across England.”
The Wembley Park development has received a loan from the government’s £3bn Home Building Fund.
The scheme will bring over 8,000 jobs to the area and support infrastructure to free up land for development.
It will be completed in phases over the next seven years and will include a mix of studio, one-, two- and three-bedroom properties.
Work on the development has already begun and is set to be completed in 2026.