The NHB is a subsidiary of Homes England and will offer long-term, low-cost finance enabling developers to scale up projects, unlock stalled sites and invest in new technologies such as modular housing.

The trailblazing approach will see Homes England, the national housing and regeneration agency, able to issue government guarantees directly and have greater autonomy and flexibility to make the long-term investments that are needed to reform the housing market and deliver strong returns.

Chancellor of the Exchequer, Rachel Reeves, said of the scheme: “The Bank will help unlock a wide range of sites, including larger ones which struggle to get up front lending given their risk and complexity, using a mixture of equity investment, loans and guarantees to leverage global institutional capital into UK housing, reducing risk at the early stages of development.”

Homes England Chair Pat Ritchie said: “The National Housing Bank responds to calls from the housing sector, mayors and local leaders to increase the scale of available public and private finance for housing and regeneration, provide a broader range of flexible debt, equity and guarantee products, and enable more timely decision making.”

Phil Mayall, Managing Director, Muse Places commented: “The announcement is hugely exciting for the regeneration and housing sector.  Muse has long advocated the need for a longer-term, partnership approach to the delivery of housing in areas of most need and the new National Housing Bank achieves this at scale.  We very much look forward to working in partnership with the Bank and the Government to deliver at pace.”