MHCLG launches £16bn National Housing Bank
The Ministry of Housing, Communities and Local Government (MHCLG) has launched the National Housing Bank (NHB), a publicly owned subsidiary of Homes England. Supported by £16bn in new public investment and £6bn in existing funding to be allocated over the course of this Parliament, the NHB is designated as a Public Financial Institution. It aims to leverage a further £53bn in private investment to support the delivery of over 500,000 new homes. The NHB is expected to generate long-term returns for government in line with the 2025 Financial Transaction Control Framework. It will facilitate the development of a wide range of sites—including larger projects that often face challenges in securing up front lending due to their inherent risk and complexity—by deploying a combination of equity investments, loans and guarantees to leverage global institutional capital into UK housing. The NHB will also provide a wider range of financial products, including debt, equity and guarantee products to help SMEs accelerate housebuilding and expand their businesses. Additionally, it will assist developers in unlocking large, complex sites through infrastructure finance. A wider programme of investment, including £5bn in grant funding for infrastructure and land through the new National Housing Delivery Fund, will complement capital investment from the NHB.