Mr Raab previously served as minister of state at the Ministry of Justice, having been appointed to the post in June 2017.
Following a ministerial reshuffle by Theresa May, the department has changed its name from the Department of Communities and Local Government.
Sajid Javid has been appointed secretary of state for the newly-named department after previously serving as the secretary of state for communities and local government, following his appointment to the role in July 2016.
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“Building the homes our country needs is an absolute priority for this government and so I’m delighted the prime minister has asked me to serve in this role,” said Mr Javid.
“The name change for the department reflects this government’s renewed focus to deliver more homes and build strong communities across England.”
Alok Sharma – who previously served as minister of state for housing and planning for the Department for Communities and Local Government – was appointed minister of state for employment at the Department of Work and Pensions in the reshuffle.