UK Launches £16bn National Housing Bank to Drive 500,000 Homes

The UK government is launching a publicly owned National Housing Bank, a subsidiary of Homes England, with £16 billion in capital to stimulate the construction of over 500,000 new homes. The bank aims to unlock £53 billion in private investment by offering a mix of loans, equity, and guarantees, particularly targeting stalled and complex sites as well as supporting SME builders with new lending products and revolving credit. This initiative is designed to provide long-term, flexible capital and government guarantees to stabilize the volatile housing market and accelerate delivery. Additional funding includes a £2.5 billion low-interest loan pot for social housing and a £39 billion Affordable Homes Programme over ten years to deliver 1.5 million homes. The bank will also support regional efforts such as the City Hall Developer Investment Fund in London and the Housing Investment Loan Fund in Greater Manchester to boost housing development locally. Officials emphasize that these measures are part of a broader strategy to address the housing crisis and ensure more people can access homeownership.