NatWest has pledged to lend £10 billion to the UK’s social housing sector by the end of 2028, after reaching a previous funding target a year early.
Chancellor Rachel Reeves said loans from the bank will help build thousands of affordable homes for “families priced out of homeownership”.
The bank said its funding will be channelled towards housing associations for the building of new homes, upgrading existing properties and improving living conditions.
Some of the lending will also help fund energy efficiency and environmental improvements, including retrofit projects.
Social housing is offered through housing associations or the local council, typically to low-income households or people needing additional support.
The new funding goal comes after NatWest said it had met a previous £7.5 billion target a year ahead of schedule, having been earmarked for 2024 to 2026.
NatWest said its total funding into the social housing sector, through commercial loans and capital market support, has topped £25 billion since 2018.
Paul Thwaite, chief executive of NatWest Group, said reaching its prior goal ahead of schedule “shows the demand in the market” for social homes.
Ms Reeves said: “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.
“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.”
