NatWest Group has announced an updated package of targeted lending and support for UK social housing, aimed at supporting local housing authorities and homeowners alike in the face of ongoing economic pressures.
Through a new ambition of £7.5bn of lending (new funding gross of repayments and amortisations) over three years from 1 January 2024 to year-end 2026, the bank is aiming to support the delivery and maintenance of social housing in the UK, which is vital to the people and families who rely on affordable housing, as well as the wider economy.
According to a 2024 report by the Centre for Economics and Business Research 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. The report also found that in 2023 there was a net loss of nearly 12,000 social homes, while 1.3 million households are on a waiting list in England.
This lending should help the housing associations sector to 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. Alongside the construction of new properties, this lending could also help housing associations finance energy efficiency and environmental solutions, such as retrofits.
Robert Begbie, CEO, commercial and institutional banking, NatWest Group, said: “NatWest continues to be a leading lender to the UK social housing sector, and we are pleased at being able to increase our lending to the sector as demand continues to grow.
“The sector continues to be a key priority as we aim to help more people and families have access to housing. By further increasing our ambition to provide £7.5bn in funding by the end of next year, we will continue to drive growth in this important sector, supporting those who need it most.”
Today’s announcement is the bank’s latest signal of support to the housing association sector. In February 2021, the bank 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.
NatWest Group has also helped deliver for the sector across the UK: under its Royal Bank of Scotland brand, the bank recently concluded a lending transaction of £19m for social housing developer Eildon Housing Association, with the developer planning to deliver nearly 800 new homes in the Scottish Borders.
In England the bank has recently delivered a £30m loan to Wakefield and District Housing (WDH) to finance improvements across its social homes. This forms part of a £300m total funding package to support WDH’s strategic growth goals. WDH owns 32,000 properties in Yorkshire, the Humber and Lincolnshire.
Read the orginal article: https://propertyindustryeye.com/natwest-group-to-support-social-housing-sector-with-7-5bn-lending-ambition/
