£16 billion to build new homes

The government has announced £16 billion of public investment to help build 500,000 new homes.

The new National Housing Bank, a subsidiary of Homes England, will be publicly owned and backed with £16 billion of financial capacity in order to accelerate housebuilding.

It is hoped this will also leverage £53 billion of additional private investment.

Homes England will be able to issue government guarantees directly and have greater autonomy and flexibility to make the long-term investments that are needed to reform the housing market and deliver strong returns.

The National Housing Bank will also 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.

Deputy Prime Minister and Housing Secretary Angela Rayner: “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, said: “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.”