The minister said that up to 10,000 properties for the private rented sector would be under construction by 2015. The funds are used to lower the risk for developers construction new housing intended for the private rental sector.

Chancellor George Osborne threw his weight behind the Build to Rent Fund in his Budget statement last month, increasing its funding from £200m to £1bn.

The initial 45 projects will use around 70% of the total fund, with a second round of bidding to take place later this year.

Prisk  said: “This Government is determined to get Britain building, and the Build to Rent Fund is set to help us deliver, with up to 10,000 new homes to be built from these projects.

“We’ve seen overwhelming demand for the fund, and it’s become clear that there’s a real appetite for rental investment. We want to support that, which is why we’ve made a £1 billion Budget boost to the fund.

“Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs.”

A quarter of the projects announced will create new homes in London and Mayor of London Boris Johnson welcomed the announcement.

“With London’s population expanding at record pace, we need to build around a million new homes in the next 25 years to meet demand and avert a possible housing crisis,” he said.

“Increasing supply in the private rented sector has a massive part to play in this.

“Building new well-designed homes to rent will also lead to a more balanced rental market for Londoners, as well as providing construction jobs and stimulating growth for London’s economy by making it an even better place to live and work in.”