The National Housing Bank and Greater Manchester Combined Authority have agreed a new financing arrangement that could provide up to £500m for housing and mixed-use regeneration across the city region. The agreement announced on 6 November 2026 is described by Homes England as the first of its kind in England and will allow the Bank to consider investments alongside Greater Manchester's existing Good Growth Fund.
The £500m is a potential investment commitment under the partnership, with individual projects required to satisfy the National Housing Bank's mandate, due diligence and approval processes before finance is agreed. The announcement provides an additional route for funding developments across Greater Manchester's ten boroughs, although it does not identify individual schemes receiving investment, the number of homes to be financed or a construction programme.
A new financing route alongside the Good Growth Fund
The National Housing Bank, established in March 2026 as a subsidiary of Homes England, has capacity to invest up to £16bn nationally through debt, equity and guarantees over the coming decade. Its investment strategy aims to attract private capital into housing and regeneration projects that require additional financial support to proceed. As London Construction Magazine reported in its examination of public finance and the construction pipeline, the Bank forms part of a wider government effort to use financial institutions and investment structures to support development delivery.
Greater Manchester's Good Growth Fund already combines grants, loans and equity investment to support housing, employment developments, transport infrastructure and regeneration. According to the Combined Authority, the Fund has committed more than £900m across the city region, supporting projects associated with over 4,600 homes and more than 2 million sq ft of employment space, alongside infrastructure expected to enable further housing delivery.
The additional National Housing Bank arrangement creates an opportunity to structure further investments using national financial capacity alongside locally identified development priorities. The Good Growth Fund is designed to use recoverable investment where possible, reduce reliance on grant funding and recycle financial returns into future projects. The Bank's participation could provide another source of capital for schemes that require support beyond conventional development finance.
September funding decisions show the existing housing pipeline
Greater Manchester Combined Authority's funding decisions provide a useful indication of the developments already being considered through the regional investment structure. On 25 September 2026, the authority approved several indicative allocations under the Good Growth Fund, including separate housing investments through the City Densification Fund, a subsidised loan proposal and a social and affordable housing allocation.
London Construction Magazine's review of the 25 September 2026 GMCA decision record identifies three housing-related indicative allocations supporting a combined 933 proposed homes. The authority approved £49.8m for City Densification Fund projects supporting 729 homes, £19m for a subsidised loan project supporting 60 homes and £3.96m for a social and affordable housing project supporting 144 homes. Each allocation remains subject to the conditions attached to the relevant approval.
| September 2026 allocation | Indicative funding | Homes supported |
|---|---|---|
| City Densification Fund | £49.8m | 729 |
| Subsidised loan project | £19m | 60 |
| Social and affordable housing | £3.96m | 144 |
| Combined housing allocations | £72.76m | 933 |
These September allocations were agreed before the National Housing Bank partnership announced on 6 November and are separate from the new £500m investment opportunity. They nevertheless show the types of proposals progressing through Greater Manchester's existing funding arrangements, including higher-density residential development and affordable housing schemes that depend on structured public investment.
National Housing Bank investment will be assessed project by project
The National Housing Bank's 2026 investment prospectus sets out the conditions governing its financing activity. Projects are expected to demonstrate that public financial support is necessary to accelerate delivery or allow development to proceed, while meeting the Bank's requirements for financial viability, appropriate investment returns and value for money. The prospectus also allows different financing structures depending on the project and the commercial circumstances.
For developers considering the Greater Manchester agreement, the relevant questions will include whether a scheme can secure sufficient funding from existing sources, what financing gap remains, how the proposed development meets regional priorities and whether its delivery programme is sufficiently advanced to support an investment decision. The Good Growth Fund already assesses projects through a structured process, with applications generally progressing through the relevant local authority and funding arrangements tailored to individual schemes.
The government announcement refers to the existing collaboration between Homes England and Greater Manchester on regeneration activity including Victoria North and Stockport Mayoral Development Corporation. These projects are examples of the relationship between the organisations; the announcement does not assign either development a new allocation under the National Housing Bank agreement.
Housing finance remains tied to local delivery and social value
Greater Manchester Mayor Bev Craig said the Good Growth Fund was intended to extend the benefits of regional investment across the city region, with publicly supported development expected to contribute to employment, training and opportunities for local businesses. The Combined Authority's approach links public investment with social value requirements, including apprenticeships and work placements associated with projects receiving support.
Paul Dennett, Deputy Mayor of Greater Manchester and City Mayor of Salford, identified the need to support social and affordable housing while coordinating development with transport, services and infrastructure. That approach is relevant to the construction programme because funding for homes may need to be considered alongside the enabling works and supporting infrastructure required to bring difficult sites into development.
National Housing Bank Chief Executive Simon Century said the agreement would combine national financial expertise with regional knowledge of development priorities, with the aim of accelerating housing and mixed-use regeneration schemes. The Bank's published funding guidance confirms that its investment tools include loans, equity and guarantees, with eligibility linked to development additionality, strategic objectives and value for money.
For Greater Manchester's construction sector, the agreement adds another potential financing route to an established regional development pipeline. The next stage will be the identification, assessment and approval of individual investment proposals, with each project required to satisfy the National Housing Bank's financial and governance requirements before its funding can be committed.
How LCM calculated the September housing allocations
London Construction Magazine reviewed Greater Manchester Combined Authority's Good Growth Fund decisions approved on 25 September 2026, using the published decision record checked on 6 November 2026. The housing calculation combines three separate indicative allocations: 729 homes supported by City Densification Fund proposals, 60 homes under the subsidised loan project and 144 homes under the social and affordable housing allocation. These total 933 proposed homes, with associated indicative funding of £72.76m. The calculation covers those three September housing allocations and excludes transport and innovation funding decisions.
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