Hearthstone, the UK’s first residential property fund which launches at the end of September, will receive around 30 show homes worth half the £15m initially.

These will then be leased back by Bovis to provide the fund with an income stream.

The £15m deal is the second major investment the fund has seen since it was soft-launched in August, following a £22.5m deal with Barratt Developments announced in July.

Eventually the properties will be let to private tenants or sold once the development site completes.

In total the fund is looking to raise around £50m of seed capital from housebuilders and developers.

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Christopher Down, founder and chief executive of Hearthstone, said: “This deal underlines the potential for Hearthstone’s unique residential PAIF, which provides investors with a more liquid and tax efficient way of investing in residential property.

“The addition of Bovis Homes properties to the fund adds further diversification and income, and will increase confidence among investors.”