The National Housing Bank, a subsidiary of Homes England, will be publicly owned and backed with £16 billion 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 over 500,000 new homes.   

The approach will enable Homes England, the national housing and regeneration agency, to issue government guarantees directly, affording it greater autonomy and flexibility to make the long-term investments necessary to reform the housing market and deliver strong returns.   

With long-term, flexible capital, the National Housing Bank will be able to act as a consistent partner to the private sector, providing the stability and certainty that housing developers and investors need to deliver projects successfully.

It will also support SMEs with new lending products and enable developers to unlock large, complex sites through infrastructure finance.       

Deputy prime minister and housing secretary Angela Rayner: “We‘re turning the tide on the housing crisis we inherited – whether that’s fixing our broken planning system, investing £39 billion 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 Britain’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.”

The Bank will deploy some of the £2.5 billion in low-interest loans announced at the Spending Review to support the building of social and affordable homes.

It builds on £39 billion investment announced at the Spending Review for a new 10-year Affordable Homes Programme, which is the most significant boost to social and affordable housing investment in a generation, supporting our Plan for Change milestone to build 1.5 million homes.