The aim is to lend to builders and to buy new homes to let. Legal & General, Aviva, Blackstone and Schroders are among the names considering pooling their resources to bring cash to the sector.
This cash would provide the capital housebuilders need. It would also fund the buying power required to purchase a lage amount of properties to let.
At last week's RESI 09 housing conference in Newport, South Wales, Bill Hughes, Legal & General's managing director for property said around 60 investors had expressed interest in the scheme.
With the banks still stalling on lending and the housing market showing signs of recovery, Mr Hughes said investors were looking at a model that would generate a net return for investors of between 5-6%.