A new housing finance model could unlock up to 200,000 additional homes across England by 2031, according to research from CBRE and Mandala Partners.
The research sets out how the targeted deployment of £8.5bn in public risk capital can simultaneously unlock housing schemes currently stalled by viability constraints, significantly boosting national housing delivery, and generate returns for the public sector.
Investment of £8.5bn could unlock nearly 200,000 new homes across England by 2031, with funds returned to the Exchequer within 10 years.
The analysis draws on financial structures implemented through Greater Manchester’s Good Growth Fund, launched in November 2025, which has already partnered public and private institutional capital to deliver an initial 3,000 homes.
The research demonstrates how this approach can be replicated across England and also provides a framework for the government’s newly launched National Housing Bank, backed by £16bn of public finance capacity, demonstrating how it could be leveraged to mobilise additional public and private capital into housing delivery.
Iain Jenkinson, executive director at CBRE, said: “The combination of elevated build costs and constrained values continues to impact the viability of housebuilding across England. Our research demonstrates that targeted public risk capital can play a critical role in closing that gap and seeing much-needed homes delivered where demand is greatest.
“By deploying public funds in an investable, risk capital way, targeted interventions can unlock a significant number of homes, while also attracting private investment and supporting regional growth. The experience in Greater Manchester shows the model is already working in practice. Scaling this approach nationally presents a clear opportunity to accelerate housing delivery and support the government’s wider economic objectives.”
Nick Williams, senior adviser at Mandala Partners, added: “England has spent decades treating housing support as a cost when really it should be an investment in people and this country’s future. Alongside CBRE, Mandala’s modelling provides the first independent assessment of the potential from changing that mindset.
“The results are exciting. Every £1 the government invests pulls in £2.60 of private capital. And because the money invested comes back with interest, it can be reinvested again and again. Housing would no longer simply be a ‘tax and spend’ question for the Treasury but an investment in England’s growth and productivity. We have already seen this work in Greater Manchester. It’s ready to go national.”
