Summary
CBRE and Mandala Partners have developed new research exploring how public investment can help unlock stalled housing delivery across England.
Housebuilding is increasingly constrained by rising costs and pressure on development viability. Construction costs have risen by 39% since 2021, while delivery has slowed following the 2022 peak, leaving many schemes unable to come forward.
The research outlines how the strategic use of public investment could unlock new homes stalled by viability constraints and generate returns for the public sector. With the new housing finance model having the potential to unlock up to 200,000 additional homes and support more than 70,000 jobs across England by 2031.
In this context, ‘risk capital’ refers to targeted public investment – through equity, loans or guarantees – used to bridge viability gaps and attract private funding. Unlike traditional grant funding, this approach is designed to recycle capital and support delivery over the long term.
The analysis demonstrates how targeted deployment of public capital can unlock private investment and accelerate housing delivery at scale, supporting new homes while generating wider economic benefits.
The full report provides detailed analysis and insights on how a risk capital approach can be applied in practice.
High costs and flat prices have made housebuilding increasingly unviable
Public ‘risk capital’ investment can close viability gaps and unlock housing
And stimulate substantial economic benefits to the UK economy
