A Number 10 spokesman confirmed that McVey, MP for Tatton would be taking over the housing minister responsibilities and that Malthouse’s brief had yet to be confirmed.
Malthouse was one of the candidates to stand against new prime minister Boris Johnson in the Conservative leadership election.
The housing minister role has seen many incumbents since the Conservatives took power in the coalition with the Liberal Democrats in 2010.
McVey is likely to take the lead on housing policy and interaction with the industry, with responsibilities expected to include financing streams, home ownership policy and Help to Buy.
She will also attend cabinet.
McVey was secretary of state for work and pensions from January to November 2018 before resigning over the Brexit withdrawal agreement. She was also minister of state for employment from 2013 to 2015.
Jenrick replaces Brokenshire
Robert Jenrick has been appointed secretary of state for housing, communities and local government and will lead the Ministry of Housing, Communities and Local Government (MHCLG), with McVey taking on housing policy.
Jenrick, Conservative MP for Newark, was exchequer secretary to the Treasury from 9 January 2018 until his promotion to replace James Brokenshire who resigned yesterday.
He has previously held roles within the Department for Work and Pensions, Ministry of Justice and Home Office.
The future of housing and homelessness minister Heather Wheeler, who took on her role in January 2018, is not yet known.
Incoming chancellor blocked mortgage prisoner deal
Johnson has also appointed housing secretary Sajid Javid as chancellor of the exchequer.
A freedom of information (FOI) request made by Thisismoney in February revealed that six years ago Javid, then economic secretary to the treasury, torpedoed proposed regulation that could have saved mortgage prisoners thousands of pounds each.
Javid, who was housing and communities secretary from July 2016 to April 2018, has been promoted from home secretary.
He was also secretary of state for business, innovation and skills from May 2015 until July 2016.
Return of Shapps
One of those previous housing ministers, Grant Shapps, has returned to government, replacing Chris Grayling as transport secretary.
Shapps lasted more than two years as housing minister when he took on the role in May 2010 following the formation of the coalition government between the Conservatives and Liberal democrats.