PuFin takes flight: Homes England launches new bank

The recent announcement by Homes England about the launch of the National Housing Bank (a PuFin) marks a significant step towards achieving the government's ambitious housing targets. 

Paul Ray and Clare Rumble provide their expert insights on how this initiative could transform the UK's housing landscape.

What is a PuFin?

A PuFin is a Public Financial Institution, and the National Housing Bank will operate as a publicly owned subsidiary of Homes England. The PuFin will benefit from £16 billion of financial capacity, supplemented by £6 billion of existing finance allocated for this parliamentary term.

What’s the purpose of the National Housing Bank?

The National Housing Bank aims to accelerate housebuilding, attract £53 billion of additional private investment, generate employment, and facilitate the construction of over 500,000 new homes. This initiative is designed not only to increase the number of houses but also to foster community creation and rejuvenate existing areas.

The launch of Homes England’s new bank offers numerous opportunities for public sector organisations to transform underused land into thriving residential areas. With the support of PuFin, local authorities can now plan and implement regeneration projects with greater confidence, overcoming previous financial limitations, leading to revitalised communities and enhanced social infrastructure, crucial for sustainable development.

Our regeneration team has extensive experience in complex land transactions involving both private and public sectors. 

Clare Rumble, Senior Associate, sees this initiative as a pivotal financial support:

As a law firm which is proudly positioned at the forefront of addressing major societal challenges, we view this new funding as a crucial tool in assisting clients to resolve the housing crisis.

Why is it needed?

The government aims to reform and invest in Britain’s renewal to address the housing crisis. The strategy involves creating long-term, flexible capital to bring stability and certainty to the housing sector and to facilitate delivery of housing.

It will support in land assembly, regeneration, and the development of large complex sites by providing funding that might not have been accessible or viable for the private sector.

What impact will the National Housing Bank have?

Navigating the complex legal landscape is essential for the operation of the new National Housing Bank. Paul Ray, Partner, highlighted the importance of understanding this aspect: 

“We see the positive impact of private finance leveraged alongside public funding in particular from Homes England."

"We need new ideas to solve our housing crisis and correct the UK's dislocated housing market. This innovative National Housing Bank, established under the PuFin model, will enable Homes England to raise more private finance and provide lower-cost funding to the housing industry. Given Homes England's important role in partnering with commercial lenders, this initiative represents a significant intervention to attract further private finance into the residential and regeneration sector."

This new funding source will unlock sites across the country and drive delivery of the government's ambitious Plan for Change to build 1.5 million homes.

The ultimate goal: Boost home ownership, attract investment, and create housing security for all.