Lloyds announces £500m affordable housing boost for small and specialist providers

The extended finance is expected to deliver a further 2,000 homes. It is designed to help smaller housing associations and specialist providers access long-term capital to deliver and maintain social and affordable homes. 

Specialist social landlord Golden Lane Housing, which provides homes that enable people with a learning disability and autistic people to live independently, received a £10m revolving credit facility from Lloyds in 2025.

The new announcement was made alongside Lloyds’ third annual Social Housing Forum, chaired by the banking group’s chief executive Charlie Nunn.

Mr Nunn said: “Small and specialist housing providers are uniquely connected to communities across the country, and our new £500m commitment will boost their impact and delivery for those most in need. 

“There is no single solution to the housing challenge but, with greater cross-sector collaboration as we’ve seen through the Social Housing Initiative, we can generate the finance, ideas and partnerships required to increase the supply of genuinely affordable homes.”

Housing secretary Steve Reed said: “Building more social and affordable housing will get people out of temporary accommodation, off waiting lists and into their own homes.

“Alongside this government’s £39bn programme to fund new social housing, Lloyds’ commitment to small and specialist housing providers is exactly what we need.”

In 2024, Lloyds launched an investment model that proposes to repurpose government funding towards building new social housing, while reducing the cost of providing housing benefits.

The model was detailed in a white paper released as part of the one-year anniversary of Lloyds’ Social Housing Initiative, which was created to develop practical and scalable solutions to challenges facing the UK housing sector.