The government has launched a new £16 billion National Housing Bank in a bid to turbocharge housebuilding and attract billions in private sector investment, with a target of delivering more than 500,000 new homes.
The bank, a publicly owned subsidiary of Homes England, will have the financial capacity to unlock up to £53 billion in additional private investment, offering long-term capital and government guarantees to accelerate development across the country.
Backed by £6 billion in existing finance already allocated this Parliament, the National Housing Bank will give Homes England greater autonomy to support large, complex sites, lend to SMEs and finance infrastructure that enables housing delivery.
Deputy Prime Minister and Housing Secretary Angela Rayner said the move was a cornerstone of the government’s “Plan for Change,” aimed at tackling the housing crisis.
AFFORDABLE HOMES
“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,” she said.
“Our foot is firmly on the accelerator when it comes to making sure a generation is no longer locked out of homeownership.”
The announcement was broadly welcomed by housing experts, but some warned it risks sidelining critical parts of the housing mix – particularly Shared Ownership.
MISSED OPPORTUNITY
Adrian Plant, Director of SOWN, part of the Leaders Romans Group, said it was encouraging to see new efforts to boost supply, but called the lack of focus on Shared Ownership “a missed opportunity.”
“Shared Ownership offers a springboard for working households who can’t afford to buy outright but want a path to homeownership. That it has been overlooked in today’s announcement is a missed opportunity to support aspiration, boost tenure diversity, and relieve pressure on both the private rented sector and social housing stock.”
Plant criticised recent government communications for failing to acknowledge Shared Ownership, warning that limited visibility risks undermining uptake and weakening its role as an affordable route to ownership.
“The current emphasis on social homes is important, but it shouldn’t come at the cost of helping working people buy. A more balanced approach is essential.”
He added that raising awareness of Shared Ownership requires no new funding, only clearer policy backing and public engagement.
