Bank raises lending ambition as affordable housing pressures grow
NatWest has set a new target to provide £10 billion of funding to the UK social housing sector by the end of 2028, taking its total support for social housing since 2018 to more than £35 billion once fully deployed.
The bank said the commitment is aimed at supporting not-for-profit housing associations across the UK with the development, maintenance and upgrading of social housing stock, including energy efficiency and retrofit projects.
The announcement comes alongside new government measures designed to expand the supply of social and affordable homes and give providers greater certainty over rental income.
“We are incredibly proud to announce the early achievement of our £7.5 billion UK social housing lending ambition,” said Paul Thwaite (pictured right), chief executive of NatWest Group. “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 £10 billion 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.”
The funding forms part of NatWest’s five-point “Growing Together” plan, which sets out how the bank intends to support UK-wide growth, including through housing and infrastructure investment.
“This government is backing a step change in affordable housing to end the housing crisis, with £39 billion for a new social and affordable homes programme and 10-year rent certainty for the sector,” said chancellor Rachel Reeves.
“NatWest’s investment will be vital in helping housing associations deliver thousands of affordable homes for families priced out of home ownership, building an economy that works for and rewards working people.”
The new target follows recent Shelter research showing that 382,618 people are homeless in England, including 175,025 children, with overall homelessness up 8 per cent in a year. The charity has pointed to a shortage of social homes, high private rents and the housing benefit freeze as key drivers.
More than 90% of those recorded as homeless – including 84,240 families – are in temporary accommodation, often for extended periods.
NatWest’s latest pledge sits alongside other initiatives aimed at social landlords. These include a financial guarantee of up to £400 million from the National Wealth Fund, supporting a series of new loans from NatWest to registered providers of social housing.
The bank has also introduced a social rent loan product for housing association customers to support new social rent developments. In December 2025, the size of this fund was doubled to £1 billion in response to demand.
VIVID, a UK housing association, became the first borrower from NatWest’s social loan fund in November 2025, securing £100 million as part of a wider £500 million facility to finance homes for social rent. The 10-year facility offers discounted margins and no arrangement fees and is expected to fund an additional 450 social rent homes.
“NatWest’s new social rent loan product gives housing associations the financial flexibility to build more homes at social rent levels,” said David Ball, chief financial officer at VIVID. “The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.”
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