The National Housing Bank; a publicly owned and backed subsidiary of Homes England

In June 2025 the government announced "Over 500,000 homes to be built through new National Housing Bank". The creation of the new National Housing Bank, aims to significantly boost housebuilding across the country. It will be backed by £16 billion in financial capacity and managed as a subsidiary of Homes England. The initiative is expected to unlock £53 billion in private sector investment. Combined with an existing £6 billion already allocated, the project will facilitate the construction of over 500,000 new homes, while also creating jobs and stimulating economic growth.

This new housing bank will grant Homes England increased autonomy and the power to issue government guarantees directly, allowing it to make long-term, flexible investments. Its goal is to bring greater stability and certainty to the housing market, especially for private developers and investors. Additionally, the bank will support small and medium-sized enterprises (SMEs) with tailored lending products and help fund infrastructure for complex housing developments, making it easier to unlock challenging sites and accelerate construction.

The National Housing Bank will:

• Provide a wider range of debt, equity and guarantee products supporting SMEs to accelerate housebuilding and grow.
• Expand the use of lending alliances with the private sector, to increases access to finance for housebuilders.
• Support unlocking large, complex sites to increase confidence and boost housing supply through the provision of infrastructure finance and guarantees.
• Scale up partnership investments to draw more institutional funds into housing and mixed-use schemes such as Schroders Real Estate Impact Fund, the MADE Partnership with Lloyds Bank Group and Barratt Redrow and HABIKO joint venture with PIC and Muse, and PPPs with Oaktree Capital and Greycoat Real Estate.
• Work with Mayors and local leaders to develop integrated packages of financial support to deliver their housing and regeneration priorities, alongside wider land and grant funding.
• Provide the low-interest loans announced at the Spending Review to support the delivery of more social and affordable homes – recognising their importance in tackling the housing crisis.

Following this announcement MHCLG and Homes England will work with the Greater London Authority, and established Mayoral Strategic Authorities, to agree how to support them to deliver on regional housing priorities.As part of this, MHCLG and Homes England may agree that some of this £16bn allocation for the National Housing Bank will be devolved to the GLA or Mayoral Strategic Authorities – and would therefore be delivered outside the remit of the Bank, but with the same targets and objectives

The National Housing Bank is a permanent institution which will deliver debt, equity and guarantees. In many cases CDEL grant will also be a critical part of the capital stack to deliver large scale, complex and transformational housing regeneration and infrastructure projects.

To support this, alongside these financial products MHCLG will provide c.£5bn CDEL grant to invest across the country. This CDEL grant will sit alongside the financial products delivered by the National Housing Bank to ensure large, transformative and otherwise unviable projects nationwide can be delivered.

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