London, UK – 17th June, 2025 – The UK government has unveiled the establishment of the National Housing Bank, a subsidiary of Homes England, designed to accelerate housing delivery and unlock £53 billion in private investment. This initiative, backed by a £16 billion financial capacity in addition to £6 billion already allocated this Parliament, aims to deliver over 500,000 new homes while creating jobs and fostering economic growth.
The National Housing Bank will provide low-interest loans, equity investments, and government guarantees, positioning itself as a stable, long-term partner to the private sector. Its strategic objectives include supporting small and medium-sized enterprise (SME) developers with innovative lending products and revolving credit facilities, unlocking large and complex housing sites through infrastructure finance, and attracting global institutional capital by offering certainty and flexibility. By reducing upfront development risks, the Bank seeks to expedite housing delivery across the UK.
In an official press release, Deputy Prime Minister and Housing Secretary Angela Rayner emphasized the government’s commitment, stating, “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. 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.”
Chancellor of the Exchequer Rachel Reeves highlighted the financial scale of the initiative, stating, “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.”
Pat Ritchie, Chair of Homes England, underscored the Bank’s alignment with sector needs, stating, “Establishing the National Housing Bank, as a part of Homes England, builds on the Agency’s expertise at providing a wide range of finance to partners and places to unlock the delivery of new housing and mixed-use schemes. The National Housing Bank also responds to calls from the housing sector, mayors and local leaders to increase the scale of available public and private finance for housing and regeneration, provide a broader range of flexible debt, equity and guarantee products, and enable more timely decision making.”
Stephen Teagle, CEO of Partnerships & Regeneration at Vistry Group, added, “This announcement underlines the government’s commitment to use all the tools available to drive delivery and tackle the housing crisis head-on. Establishing the new National Housing Bank as a subsidiary of Homes England will help bring schemes forward at pace, ensure alignment with other programmes and gain traction with developers and investors keen to leverage investment and drive delivery.”
The National Housing Bank represents a vital step in addressing the UK’s housing challenges, combining substantial financial backing with targeted support for developers and communities. By fostering collaboration between public and private sectors, the initiative aims to deliver sustainable, vibrant communities and ensure access to secure housing for future generations.
