Hundreds of thousands of extra homes will be delivered thanks to a government-backed ‘housing bank’.
The government claims the National Housing Bank will unlock billions in private sector investment to “turbocharge housebuilding.”
The National Housing Bank will be publicly owned and backed with £16 billion of financial capacity, on top of £6 billion of existing finance to be allocated this Parliament, in order to accelerate housebuilding and – the government forecasts – leverage The government claims the National Housing Bank will unlock billions in private sector investment to “turbocharge housebuilding.”in £53 billion of additional private investment, creating jobs and delivering over 500,000 new homes.
Homes England, a national housing and regeneration agency, will be able to issue government guarantees directly and have greater autonomy and flexibility to make long-term investments.
The government says: “With long-term, flexible capital, the National Housing Bank will be able to act as a consistent partner to the private sector, bringing the stability and certainty that housing developers and investors need to make delivery happen. It will also support SMEs with new lending products and enable developers to unlock large, complex sites through infrastructure finance.”
The Bank will deploy some of the £2.5 billion in low-interest loans announced at the Spending Review to support build social and affordable homes.
The government says this builds on £39 billion investment announced at the Spending Review for a new 10-year Affordable Homes Programme.
Deputy Prime Minister and Housing Secretary Angela Rayner says: “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.”
And Chancellor of the Exchequer, Rachel Reeves adds: “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 £53 billion of additional private investment—giving more working people the security of home ownership and investing in Britain’s renewal.
“Because we reformed our fiscal rules, we can invest through government-backed institutions, like the new National Housing Bank, to attract private investment and make sure money flows into projects that deliver real benefits for working people and communities.”
