House builder Crest Nicholson’s £500m Centenary Quay project aims to transform the former Vosper Thorneycroft marine works in Southampton with 1,600 homes and a new supermarket.

The Build to Rent deal forms part of a £7.5m package to kick start phase three to deliver 230 of the homes on the site – 102 of which will be available for private rent.

Once the 102 homes for private rent are completed, Crest Nicholson will then sell them to the A2 Dominion Group which will let and manage them as the landlord.

Housing Minister Mark Prisk said: “We’re determined to build a bigger and better private rented sector that gives tenants a wide choice of good quality homes.

“That’s why I’m delighted that the Centenary Quay development in Southampton will be the first to receive funding through our Build to Rent scheme, to deliver 102 homes for rent in the heart of Southampton.”

Chief Executive of the Homes and Communities Agency Andy Rose said: “Southampton’s Centenary Quay is the first Build to Rent scheme to enter contract. This is great news, stimulating new private rented housing supply and leading to opportunities for new investment in the area.

“Centenary Quay is an extremely important and exciting project. We have already seen success in the first phase of the project and the next phase will see hundreds more houses being built, transforming a former redundant shipyard into somewhere people want to live and work.”