Pension funds and other investment groups will be encouraged to become landlords of big residential estates under government plans to alleviate the housing crisis through the creation of an institutional private rented sector.

It is hoped that the initiative, launched by the Homes and Communities Agency today, will attract significant investment into the housing market by encouraging institutions to fund new homes specifically for private rent.

Pension fund managers, such as Legal & General, have been in talks with the government for months about creating a long-term funding model.

Financial Times