Housing Bank to Fund 500,000 Homes – What Buyers Should Know

The UK government has announced the creation of the National Housing Bank, a publicly owned subsidiary of Homes England. This new institution is expected to support the construction of over 500,000 new homes across England, addressing long-standing supply issues in the housing market.

£16 Billion in New Funding to Accelerate Development

Backed by £16 billion in financial capacity, the National Housing Bank will complement the existing £6 billion already allocated for housing during this Parliament. The initiative is also expected to unlock £53 billion in private investment, significantly increasing the scale and speed of housing delivery. According to Savills’ Q1 2025 Housing Supply Update, planning delays and limited local authority capacity remain key barriers to delivery, making this new funding all the more critical.

Greater Flexibility and Long-Term Investment Power

The National Housing Bank will give Homes England the ability to issue government guarantees directly, offering greater autonomy and flexibility to make long-term investments. This is designed to reform the housing market and deliver strong financial and social returns. The BBC has reported that this move is part of a broader strategy to stabilise the housing sector and encourage private sector confidence.

Supporting Developers and Unlocking Complex Sites

With its long-term, flexible capital, the Bank aims to be a reliable partner to private developers, offering the stability and certainty needed to move forward with large-scale projects. It will also introduce new lending products for SMEs and provide infrastructure finance to unlock complex or stalled development sites. As highlighted in Savills’ Single Family Housing 2025 report, smaller developers continue to face disproportionate challenges due to land costs and planning constraints.

Responding to Industry and Local Government Needs

According to Homes England Chair Pat Ritchie, the creation of the National Housing Bank is a direct response to calls from the housing sector, local leaders, and mayors for more accessible and scalable public and private finance. The Bank will offer a broader range of flexible debt, equity, and guarantee products, and enable faster, more responsive decision-making.

Legal Guidance for Home Buyers and Sellers

With the launch of the National Housing Bank and a significant increase in new housing developments on the horizon, now is a crucial time for buyers and sellers to seek trusted legal advice. Whether you’re considering purchasing a new-build home, investing in property, or selling in a fast-moving market, it’s essential to have the right legal support

At Machins, we understand that buying or selling your home can be stressful. For many, it may well be the most important transaction of their lives. It doesn’t matter if you are a first-time buyer, a first-time seller or a seasoned property investor, we have a large, experienced and friendly residential conveyancing team who will be with you every step of the way.

With our deep understanding of the legal process and extensive local knowledge in Hertfordshire, Bedfordshire and Buckinghamshire, we ensure your transaction proceeds as smoothly and efficiently as possible.

Contact us today to find out how we can support your next move in this evolving housing landscape.