NatWest has announced a further £10 billion ($12.7 billion) in funding for the UK social housing sector to be deployed by the end of 2028. Once allocated, the commitment will take the bank’s total funding for social housing to more than £35 billion ($44.5 billion) since 2018.
The bank said it has already provided over £25 billion ($31.8 billion) to the sector since 2018, supporting housing associations with the development, maintenance and upgrade of affordable homes across the UK. Part of the lending is expected to support energy efficiency and retrofit projects, alongside the delivery of new housing.
Paul Thwaite, Chief Executive of NatWest Group, said: “We are incredibly proud to announce the early achievement of our £7.5 billion ($9.5 billion) 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 £10 billion ($12.7 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 announcement follows recent government commitments to expand affordable housing supply. Chancellor of the Exchequer Rachel Reeves said: “This government is backing a step change in affordable housing to end the housing crisis, with £39 billion ($49.5 billion) for a new social and affordable homes programme and 10-year rent certainty for the sector.
“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.”
NatWest also highlighted complementary measures introduced over the past year, including a financial guarantee of up to £400 million ($508 million) from the National Wealth Fund to support new loans to registered social housing providers. The bank has also expanded its social rent loan product, which was doubled to £1 billion ($1.27 billion) in December 2025 following strong demand.
As part of this programme, housing association VIVID secured £100 million ($127 million) from NatWest in November 2025 as part of a £500 million ($635 million) social loan fund. The funding is expected to support the delivery of around 450 new social rent homes, backed by a 10-year loan term.
David Ball, Chief Financial Officer at VIVID, said: “NatWest’s new social rent loan product gives housing associations the financial flexibility to build more homes at social rent levels. 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.”
The funding announcement comes as homelessness continues to rise in England, with housing charity Shelter estimating more than 382,000 people, including 175,000 children, are currently homeless, many living in temporary accommodation.
