The Turnbull government appears to be moving toward establishing a government backed-bond vehicle for affordable housing as Treasurer Scott Morrison heads to Britain to seek guidance on Australia's housing affordability crisis and Prime Minister Malcolm Turnbull prioritises the issue.

Similar to the Clean Energy Finance Corporation, which the former Abbott government wanted to abolish, a housing bond aggregator would give affordable housing providers access to cheaper and longer tenor debt for the construction of new homes.

Housing affodability had become a drag on Britain's productivity, Philip Hammond said. Credit:Bloomberg

It was the leading recommendation of bureaucrats in a report handed to state and federal treasurers in December, who agreed to establish a taskforce to design the model by mid-2017. The report made an exemplar of Britain's Housing Finance Corporation, which in 2014-15 issued more than £4 billion ($6.55 billion) in loans to housing agencies.

Mr Morrison is scheduled to meet with a slew of British officials this week including Chancellor of the Exchequer Philip Hammond, who in a landmark speech in November announced the doubling of capital expenditure on housing, including a £2.3 billion housing infrastructure fund.