Government are launching a ‘National Housing Bank’ to provide more affordable homes. While experts have welcomed the idea, some have deemed it a fruitless attempt to address the housing crisis.
Today (Wednesday 18th June) Labour have announced they are establishing a ‘National Housing Bank’ that is earmarked to deliver 500,000 new homes.
A subsidiary of Homes England, the initiative is set to be publicly owned and backed by £16bn of financial capacity, on top of £6bn of existing finance to be allocated this Parliament, according to the Ministry of Housing, Communities and Local Government (MHCLG).
The National Housing Bank will grant Homes England the power to be able to issue direct government guarantees and enable them to have greater autonomy and flexibility when making long-term investments.
‘We’re turning the tide on the housing crisis we inherited – whether that’s fixing our broken planning system, investing £39bn to deliver more social and affordable homes, or now creating a National Housing Bank to lever in vital investment,’ Rachel Reeves, Deputy Prime Minister, said. ‘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 home-ownership – or ensuring children don’t have to grow up in temporary accommodation.’
However, Adrian Plant, Director of SOWN which is part of Leaders Roman Group, has said that while the plan is a step in the right direction, it was a missed opportunity for highlighting how shared ownership schemes can also help address the ongoing housing crisis.
‘It is encouraging to see a further initiative to boost housing,’ Adrian said, ‘But as we have done throughout this Parliament, we call on the government not to ignore shared ownership as a vital element of the housing mix.
‘The government must reconsider its silence on shared ownership because the homeownership dream is slipping further out of reach for a generation. With rents at record highs, wages stagnating, and savings depleted, the traditional route to buying is no longer realistic for many. Shared ownership was developed to respond to precisely these conditions.
‘Last week’s spending review, like the Labour manifesto before it and the Planning and Infrastructure Bill, makes no meaningful reference to shared ownership. In fact, the most recent NPPF mentions it just once – and only in a glossary. This lack of visibility is not just symbolic. It undermines awareness, reduces uptake, and weakens the role that shared ownership could play in tackling the housing crisis.’
However, on a more positive note, Greg Reed, CEO of Places for People (PfP), added: ‘Combined with an expanded new Affordable Homes Programme, transformative new measures like this will stimulate the required momentum on housebuilding and enable providers like PfP to play a huge part in helping government meet its 1.5m new homes target.
‘As a trusted partner of Homes England, last year we delivered over 2,000 affordable homes and we are committed to accelerating and boosting our delivery. This is another huge brick in the road and we will keep talking to government, while also exploring complementary solutions to financing our sector’s clear ambition of delivering lasting change for Customers and Communities.’
The news of the National Housing Bank comes ahead of the government’s 10 Year Infrastructure Strategy which is due to outline a £725bn plan to rebuild the UK over the coming decade.
Photo by Sigmund via UnSplash
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