The government-backed housing bank will be publicly owned and supported by £16bn of investment. This will be in addition to £6bn of existing finance to be allocated this Parliament.
The government said this would also create jobs while leveraging £53bn in additional private investment.
Through the National Housing Bank, Homes England will be able to issue government guarantees directly and have more control and flexibility around the delivery of housing.
The housing bank will provide a broader range of debt, equity and guarantee products to SMEs to support housebuilding and expand its use of lending alliances with the private sector to increase access to finance for housebuilders.
The scheme will also support the unlocking of large and complex sites through infrastructure finance and guarantees, as well as scale up investment in partnerships that draw on institutional investment, such as the MADE partnership with Lloyds Banking Group and Barratt Redrow.
Mind the affordability gap
Sponsored by Newcastle for Intermediaries
The National Housing Bank will work with mayors and local leaders to develop packages of support to deliver housing and regeneration programmes and provide low-interest loans to support more social and affordable housing, as announced at the Spending Review.
‘Turning the tide on the housing crisis’
The initiative builds on the £39bn investment announced at the Spending Review for a 10-year Affordable Homes Programme and comes ahead of the government’s 10-Year Infrastructure Strategy, which will be published tomorrow.
Angela Rayner, deputy Prime Minister and Housing Secretary, 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 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.”
Rachel Reeves, Chancellor of the Exchequer, added: “Our Spending Review last week delivered the biggest cash injection into social and affordable housing in 50 years as we progress on our promise to build 1.5 million homes.
“As part of our Plan for Change, the new National Housing Bank will unlock £53bn of additional private investment – giving more working people the security of homeownership and investing in Britain’s renewal.”
