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NatWest sets out £10bn funding ambition for social housing sector
NatWest has set out a new ambition to provide £10bn of funding to the social housing sector before the end of 2028.
NatWest has set out a new ambition to provide £10bn of funding to the social housing sector before the end of 2028 #UKhousingThe bank is aiming to support housing associations both in maintaining existing homes and developing new ones, and the package is part of its new five-point plan to “help build the conditions for UK-wide growth”.
NatWest said the cash is in response to the government’s recent commitments, which the bank says will “help unlock development and speed up delivery”.
Just last week, Whitehall set the level of rent convergence, and unveiled a number of changes aimed at boosting affordable housebuilding, including a new social housing taskforce and reforms to Section 106 and Housing Revenue Accounts.
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The bank said: “NatWest aims to support the delivery and upkeep of social housing across the UK, helping housing associations build new homes, upgrade existing properties and improve living conditions.
“Some of this lending can help fund energy efficiency and environmental improvements, including retrofit projects. Other funding can help the housing associations sector to deliver a pipeline of new homes and improve living conditions in existing properties.”
The lending applies from 1 January 2026 to 31 December 2028, and includes new funding gross of repayments and amortisations by way of commercial loans and capital market support.
Since 2018, the bank has provided more than £25bn in commercial loans and capital market support to housing associations, and has delivered a year early on its £7.5bn lending ambition from 2024 to 2026.
NatWest said this will bring total funding provided to social landlords in the UK to over £35bn since 2018.
NatWest’s new £500m social loan fund recently provided £100m in funding to Vivid, which will go towards the delivery of 450 new social rent homes.
Paul Thwaite, chief executive of NatWest, said: “We are incredibly proud to announce the early achievement of our £7.5bn UK social housing lending ambition.
“Delivering this milestone a full year ahead of schedule demonstrates our commitment to making a real difference in people’s lives by investing in the homes and communities that need it most, and shows the demand in the market.
“Reaching this lending ambition early has enabled us to set a new target of £10bn to year-end 2028, so we can continue to provide social housing lending and play our part in supporting the development and availability of affordable and social rent homes across the UK.”
In response, chancellor Rachel Reeves said: “NatWest’s investment will be vital in helping housing associations deliver thousands of affordable homes for families priced out of homeownership, building an economy that works for and rewards working people.”
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