The agency, which is a non-departmental body sponsored by the DCLG, says it has appointed a property adviser to help it generate investor interest.
A HCA spokesman says: “There are a number of positives round this type of investment including the fact that it helps provide more quality rental homes.”
Legal & General has revealed that it is one of the interested parties in private rented investment and has held “early stage talks” with HCA.
A spokesman says: “We are waiting on the HCA proposals and look forward to seeing its outcomes.”
Pension consultant Dr Ros Altmann says local authority pension funds are also rumoured to be considering the potential of investing in new rental properties.
She says: “This sort of initiative makes sense, it’s a sensible investment for pension funds and it’s a valuable avenue to explore.
“This will offer pension funds income stream, capital gains and has inflation potential.”