NatWest has launched a £500m loan fund to support the building of social rent housing across the UK.
The ringfenced loans are available to eligible housing associations that already bank with NatWest.
The move came after customers asked for more funding to build social rent homes.
Loans will come with lower interest margins and no arrangement fees.
NatWest has set a target to lend £7.5bn to the social housing sector by the end of 2026.
This includes a partnership with the National Wealth Fund, where NatWest agreed to loan up to £500m to help retrofit existing social homes, supported by a guarantee from the fund.
The new £500m offering is separate and focused on new builds.
Additionally, NatWest said it hoped cheaper loans would help housing associations build more social rent homes and free up money to improve existing ones.
Paul Thwaite, CEO at NatWest Group, said: “We’re proud to be a major lender to the UK social housing sector and are committed to the role we can play in supporting house building.
“The housing crisis is one of the biggest issues facing our country which is why we have made a £7.5 billion lending ambition to the social housing sector.
“As part of this, our first of its kind £500 million social loan offering is the latest support for our customers to help social rent house building across the UK.”
Thwaite added: “With over 1.3 million people on social housing waiting lists, this is a step in the right direction to help those who need it most.
“This announcement comes soon after the news of NatWest Group agreeing a guarantee from the National Wealth Fund of up to £400 million to help with lending to retrofit existing social homes.
“We look forward to continuing to work with providers from across the industry to support house building and to help more people into safe stable homes.”
Liz Laurence, programme director for the Royal Foundation’s Homewards programme, said: “It is great to see NatWest’s announcement today to deliver new support for more social home building.
“As a Homewards Activator, NatWest has been doing some great work, so we are excited to build on this and go even further through our work together.
“Homelessness is a societal issue that requires a collective response, and we hope more organisations will be inspired to play their part as a result of NatWest’s significant commitment today.”
