NatWest Group has unveiled a £5bn lending plan designed to provide support for the UK social housing sector amidst economic pressures
The new £5bn lending plan will run over three years from 1 January 2024 to year-end 2026. Through the plan, NatWest Group aims to support the delivery and maintenance of UK social housing.
According to a recent report by CEBR, National Housing Federation, and Shelter, social homes are more stable than private renting, as tenancies are secure, leading to better socioeconomic outcomes and increasing rates of employment.
1.3m households are on the waiting list for social housing in the UK
The report also found that in 2023 there was a net loss of nearly 12,000 social homes, while 1.3m households are on a waiting list in England.
This lending should help the housing associations sector deliver a pipeline of new homes and improve living conditions in existing properties, thus improving the availability and quality of social housing in the UK.
In addition to building new properties, this lending could also help housing associations finance energy efficiency and environmental solutions, such as retrofits.
NatWest issued a €1bn affordable housing social bond in February 2021
In February 2021, NatWest issued a €1bn affordable housing social bond, the first of its kind by a UK bank, using the bond proceeds to finance or refinance loans to not-for-profit registered housing associations operating in the UK.
Robert Begbie, CEO, commercial & institutional banking, NatWest Group said: “Against a backdrop of inflation and rising living costs, pressures on the housing sector and homeowners have increased.
“These increasing costs reduce the capacity to deal with other priorities such as new and upgraded housing, and tackling the critical challenges of energy efficiency, fire and tenant safety.
“In 2023, we completed nearly £3bn of new funding to help more people and families have access to housing. We support around 200 housing associations across the UK, and are proud to announce our ambition to provide a further £5bn in funding to support the housing association sector by the end of 2026.”
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