New Government-backed bank aims to deliver 500,000 homes

The Government has revealed details of its new National Housing Bank, a subsidiary of Homes England.

It will be publicly owned and designated as a Public Financial Institution (PuFin) and will provide a wider range of debt, equity and guarantee products that support small – and medium-size enterprises to accelerate their housebuilding and grow their businesses more rapidly.

The body will be backed with £16bn of financial capacity, on top of £6bn of existing finance to be allocated this Parliament, to accelerate housebuilding and leverage in £53 billion of additional private investment, creating jobs and delivering more than 500,000 new homes.    

A statement said it will expand the use of lending alliances with the private sector, which significantly increases access to finance for housebuilders.

The Ministry of Housing, Communities and Local Government will also work with the Greater London Authority, and established Mayoral Strategic Authorities, to agree how to support them to deliver on regional housing priorities.  

Deputy Prime Minister and Housing Secretary Angela Rayner, said:“

We‘re turning the tide on the housing crisis we inherited – whether that’s fixing our broken planning system, investing £39bn to deliver more social and affordable homes, or now creating a National Housing Bank to lever in vital investment.

“This Government is delivering reform and investing in Britan’s renewal through our Plan for Change. Our foot is firmly on the accelerator when it comes to making sure a generation is no longer locked out of homeownership – or ensuring children don’t have to grow up in unsuitable temporary accommodation, and instead have the safe and secure home they deserve.”

Commenting on the launch, a spokesperson for the Royal Institution of Chartered Surveyors, said: 

“The launch of a National Housing Bank is an exciting innovation which could propel much-needed investment into housebuilding. The industry, and especially SMEs, need all the support they can get for the country to build. Confidence is key if the Government is to meet its 1.5m home target and new streams of investment and support should invigorate new and existing projects.

“Crucially, this announcement includes a £5bn grant for infrastructure and land. This investment should help ensure that we not only build new homes but also essential utilities and social services, such as schools; making them places people want to live in that do not strain existing infrastructure.

“This is another piece of the puzzle, alongside planning reform and skills investment which should work lockstep to deliver on the ambitious targets the Government put in place last year.”

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