NatWest doubles social loan fund to £1bn as Scottish landlord latest to agree borrowing

A fourth loan has been finalised with an undisclosed landlord, bringing total borrowing under the initiative to £168m, a NatWest spokesperson told Inside Housing.

The bank currently has around 40 “active enquiries” totalling about £1bn in potential loans, the spokesperson added. This includes 15 at an “advanced stage” totalling around £500m.

The loans, which are documented in line with LMA Social Loan Principles, are available to housing associations that are existing NatWest customers. For-profit registered providers are not eligible, the spokesperson confirmed. 

The lending offers what the bank calls “discounted” interest margins and no arrangement fee. NatWest estimates it could save the sector up to £50m in finance costs.

The funding is included as part of the bank’s previous upgraded pledge to offer £7.5bn of lending to the social housing sector by the end of 2026.

Paul Thwaite, chief executive of NatWest Group, said: “Investing in safe, warm and affordable housing for families isn’t just about shelter, but an important investment in the long-term well-being, education and economic prospects of children and their parents.”

Around 1.4 million households across the UK are currently on social housing waiting lists, with the problem particularly acute in London.

Mr Thwaite added: “NatWest is committed to the role we can play in supporting the UK social housing sector in any way possible.”

NatWest returned to full private ownership in May this year as the government sold the last of its shares in the UK bank.

The Treasury had taken an 84% stake in NatWest, then the Royal Bank of Scotland, in 2008 and 2009 as part of a bailout during the height of the financial crisis.