National Housing Bank launched by government

June 24, 2025 by Brendan O'Neill

News

Property Market

The UK Government has revealed that it will be launching a National Housing Bank, as it aims to ensure that its targets for house building are met.

This bank is set to be owned by the public, but will secure investment from the private sector. It will be run as part of Homes England, the country’s housing agency. The Government is putting £16 billion into it, in the hopes of meeting housing targets. It wants to construct 500,000 homes between now and 2029.

Plans for a National Housing Bank were first outlined before the Spending Review, and the Government will invest a further £6 billion over the course of this Parliament. The main financing will come from the private sector though, to the tune of £53 billion.

There are a number of ways that the Government can attract that investment, including guarantees, loans and equity. The idea is to bring investors from all over the world into the housing market in the UK. Part of the plan is to use that money to get construction work going on sizeable and complicated housing projects. The barrier to that is usually a lack of financing upfront.

According to Financial Reporter, Angela Rayner, the Housing Secretary, said:

“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.”

Those with CeMAP training will welcome this initiative if it increases house building.