Propertymark has consistently argued that increasing housing supply requires more than planning reform. Development finance, infrastructure, construction capacity and support for smaller developers are all essential if consented sites are to become completed homes.
We also support an infrastructure-first approach. New developments must provide the transport, services, schools, healthcare and community facilities needed to create places where people want to live.
The Bank’s early activity shows how public funding can be combined with institutional and private investment to support several parts of the market, including SME housebuilding, Build-to-Rent, brownfield regeneration and major new communities. The latest deals are part of a series of investments made since the government-backed institution launched in March 2026.
Meeting UK house demand, moving beyond the planning system
It has been argued that the existing planning system is no longer fit for purpose, that it is blocking the delivery of new homes. Across the UK, national governments have looked to reform the planning sector—Propertymark explores if this will be enough to build the homes we need.
What is the National Housing Bank?
Launched on 31 March 2026, the Bank is a government-backed public finance institution and wholly owned subsidiary of Homes England. Despite its name, it is not a conventional retail or commercial bank. Instead, it provides finance for housing, mixed-use development and regeneration where market funding is unavailable or insufficient.
It can provide products including infrastructure and development loans, finance for SMEs and registered providers, equity investments in funds and joint ventures, and guarantees intended to reduce financing costs and attract institutional capital. It can also combine its finance with Homes England’s land, grant funding, powers, and technical expertise.
Together, Homes England and the National Housing Bank have access to up to £46 billion over ten years. This includes £27 billion for the Social and Affordable Homes Programme, around £3 billion of capital grant funding for land and infrastructure, and the Bank’s £16 billion of debt, equity and guarantees.
How will the latest round of funding be spent?
A £14 million infrastructure loan for Middlewood Locks in Salford will pay for site preparation, enabling, and design work to support the delivery of up to 1,900 homes on brownfield land.
A further £10 million will support the redevelopment of Walnuts Shopping Centre in Orpington, Bromley. The town-centre regeneration scheme is expected to include 440 homes.
In Ludlow, an SME housebuilder will receive an £11 million development finance loan to support the third phase of a scheme delivering nearly 90 homes. Homes England previously supported the construction of 140 family homes through the development’s first two phases.
Investment in homes for rent
The Bank’s first announced investment was a £100 million partnership between Homes England and Aviva to develop family homes for rent on underused brownfield sites.
The partnership initially aims to deliver around 300 homes in Liverpool and Manchester, with the potential to expand to 3,300 homes as further funding is secured.
The homes are intended for lower- to middle-income working families and will be built in areas with transport links and existing social infrastructure.
In April 2026, the Bank supported the acquisition of a development in Manchester which will provide 107 rental apartments, green spaces and community amenities on a former industrial site. Construction is expected to begin by the end of 2026, with the first homes scheduled for completion in mid-to-late 2028.
A further £100 million equity commitment was announced in May 2026, when the Bank became a cornerstone investor in Starlight UK’s second Build-to-Rent fund. The investment will help advance a pipeline of up to 6,000 professionally managed rental homes. Development will focus on areas where housing is undersupplied, including Manchester, Liverpool, Leeds and locations in the London commuter belt.
A new community in Cambridge East
The project is expected to provide more than 10,000 homes and at least three million square feet of commercial space, supporting around 9,000 jobs. Plans also include schools, healthcare facilities, public green space and other infrastructure.
The approximately 700-acre site, which includes Cambridge City Airport and surrounding land, will be available for redevelopment by the middle of 2029.
