The Government has selected 45 companies to build up to 10,000 new homes for the rental sector, Communities Minister Mark Prisk said.
Mr Prisk said the house-builders would share a £700 million pot to build the new homes while advice will be offered to those companies which were not successful in winning Government funding.
In a written ministerial statement, Mr Prisk said a further round of bidding for companies to apply for the remainder of the £1 billion Build to Rent Fund was expected to open later this year.
A quarter of the homes built will be in London.
In a press notice, Mr Prisk said: "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."