National Housing Bank Launched
Aiming to deliver 500,000 new homes
The UK government has launched a new National Housing Bank, aiming to deliver over 500,000 new homes and speed up housebuilding efforts. Publicly owned and operating as a subsidiary of Homes England, the bank is intended as a permanent institution, backed by £16 billion in financial capacity and an additional £6 billion in existing funding earmarked for this Parliament.
According to the Ministry of Housing, Communities and Local Government (MHCLG), the bank is expected to leverage up to £53 billion in private investment, creating jobs and boosting economic growth.
Homes England, the national housing and regeneration agency, will gain the ability to issue government guarantees directly and offer a wider range of debt and equity products. This expanded financial toolkit will support SME housebuilders to scale their operations, and help larger developers deliver complex, infrastructure-heavy projects.
Homes England to become a consistent partner
The MHCLG stated that Homes England can now become a “consistent partner” to the private sector, using long-term, flexible capital to make strategic investments. With greater autonomy, the agency can focus on reforming the housing market and delivering strong returns over time.
The National Housing Bank will also significantly expand investment into partnerships, attracting more institutional funding for housing and mixed-use developments, such as the MADE Partnership with Lloyds Bank Group and Barratt Redrow.
In addition, the bank will provide low-interest loans, as outlined in the recent Spending Review, to boost the delivery of social and affordable housing, reflecting the government’s commitment to addressing the housing crisis.
The bank will collaborate with mayors and local leaders, tailoring financial packages to support regional housing and regeneration plans. Some of the new £16 billion funding could be devolved to the Greater London Authority or other mayoral bodies, though such financing may be delivered outside the bank — but still aligned with its core goals and objectives.
