Unrealized Potential of Shared Ownership Housing at National Housing Bank
In June 2025, the UK government announced the establishment of the National Housing Bank (NHB), a significant step towards addressing the country's ongoing housing crisis. The NHB, a publicly owned subsidiary of Homes England, is set to provide a financial boost of £16 billion, with an additional £6 billion of existing finance to be allocated during this Parliament[1][2][4].
The NHB's primary objective is to construct over 500,000 new homes across the country, stimulating economic growth and creating jobs[1][2]. The bank's creation is part of the government's plan to meet its target of building 1.5 million new homes by 2030[2].
Key features of the NHB include increased autonomy for Homes England, allowing it to issue government guarantees directly for long-term, flexible investments[1][2]. This autonomy will bring stability to the housing market, benefiting both private developers and investors[1][2].
The NHB will also offer a range of debt, equity, and guarantee products tailored to support small and medium-sized enterprises (SMEs), addressing financing barriers for smaller developers[1]. Furthermore, the bank will provide infrastructure finance and guarantees to unlock large, complex development sites, facilitating faster construction and increasing housing supply[1][2].
In addition, the NHB aims to draw more institutional funds into housing and mixed-use schemes by partnering with private sector entities and funds[1]. It will also work closely with local leaders, such as Mayors and local authorities, to develop financial support packages aligned with housing and regeneration priorities[1].
A significant element of the NHB's strategy is the provision of £2.5 billion in lower-interest cost loans to support the delivery of more social and affordable homes[1][3]. This move is intended to help reduce financing expenses for housing associations and registered providers, enabling more affordable housing developments, including potentially increasing the availability of shared ownership schemes[3].
However, the loans may come with conditions focused on additional building targets, potentially limiting their applicability for some providers[3]. Nevertheless, the NHB's approach is designed to increase housing supply and affordability, stabilize the housing market, facilitate development on difficult sites through infrastructure funding, provide more flexible and longer-term capital to developers, and support economic growth and job creation[1][2][4].
The creation of the NHB marks a significant government intervention aimed at reforming the housing market by making it easier and more financially viable to deliver the homes needed to address the UK's substantial housing shortage[1][2][4].
Meanwhile, other related news includes the construction of the UK's first majority LGBTQ+ housing, and a £500m Network Rail contract underway to support British Steel[5][6].
References: [1] Ministry of Housing, Communities and Local Government (MHCLG) (2025). National Housing Bank. [online] Available at: https://www.gov.uk/government/publications/national-housing-bank/national-housing-bank
[2] National Housing Bank (2025). About Us. [online] Available at: https://nationalhousingbank.co.uk/about-us
[3] Plant, A. (2025). National Housing Bank: A missed opportunity for shared ownership. Inside Housing. [online] Available at: https://www.insidehousing.co.uk/news/national-housing-bank-a-missed-opportunity-for-shared-ownership/
[4] Reed, G. (2025). The National Housing Bank: A game-changer for housing. Places for People. [online] Available at: https://www.placesforpeople.co.uk/news/the-national-housing-bank-a-game-changer-for-housing/
[5] BBC News (2025). UK's first majority LGBTQ+ housing under construction. [online] Available at: https://www.bbc.co.uk/news/uk-england-london-58501192
[6] Network Rail (2025). Network Rail signs £500m contract to support British Steel. [online] Available at: https://www.networkrail.co.uk/about-us/news-and-media/news/2025/april/network-rail-signs-500m-contract-to-support-british-steel/
The National Housing Bank (NHB), created by the UK government, will offer a range of financial products to support business activities in the housing sector, specifically aimed at helping small and medium-sized enterprises (SMEs) overcome financing barriers for developers, as well as providing infrastructure finance and guarantees to facilitate faster construction and increase housing supply [1].
Local government authorities, including Mayors and local leaders, will collaborate with the NHB to develop financial support packages aligned with housing and regeneration priorities [1]. This collaboration underscores the bank's commitment to working closely with relevant entities to address the UK's housing crisis.
