The Prime Minister will announce plans for the “Housing Bank” in tomorrow’s spending review to provide low-cost loans to home builders for affordable homes.
Rachel Reeves’ plan will allow government housing agent Homes England to provide cheaper financing by redesigning it as a “public financial institution.”
The paper also reports that the Ministry of Housing has settled with the Ministry of Finance after a standoff between Reeves (pictured) and Deputy Prime Minister and Housing Secretary Angela Rayner.
The new deal will be funded as much as £25 billion for the affordable housing scheme over a decade, or £2.5 billion a year.
This will enable the plan to reach £11.5 billion in the current five years to about £2.3 billion a year in March 2026.
The program has established social housing with local authorities, private developers and housing associations, which are able to bid for funds.
Moving to the “housing bank” associated with English families is part of Reeves.
Under this change, homes in England are trusted under their new name to create financial assets responsibly through large investments or large-scale loans.
Home England will be one of the few government agencies with the label, along with entities such as the British Commercial Bank, the National Wealth Fund and Student Loan Company.
Last week, the MP’s Housing Committee said the spending review would “give Labour the opportunity to build 1.5 million new homes over the next five years.
Florence Eshalomi, chairman of the Housing, Community and Local Government Committee, wrote to the Prime Minister to “emphasize the importance of investing in social and affordable housing.”
Eshalomi warned the Prime Minister that “the government would not be able to achieve this if it was relying solely on the private sector” to achieve its goal of building about 300,000 houses per year.
It is understood that Reeves hopes to spend up to £113 billion in areas such as defence, infrastructure, housing and transportation throughout the parliament, while limiting daily sector costs.
