£90 Million Low-Interest Loan Scheme to Deliver Hundreds of Affordable Homes and Upgrade Thousands More Across Wales
The Welsh Government has unveiled a £90 million package of low-interest loans to accelerate the delivery of affordable housing and improve thousands of existing homes across Wales. The initiative will provide vital support to Registered Social Landlords (RSLs) as they grapple with rising construction and borrowing costs, ensuring that more families have access to safe, energy-efficient, and affordable homes.
Under the new scheme, loans ranging between £5 million and £10 million will be made available to help deliver 277 much-needed affordable homes—with 119 homes completed within this Senedd term alone—as well as improvement works to more than 4,397 existing properties. These upgrades will bring homes up to the Welsh Housing Quality Standard, ensuring they are affordable to heat, sustainable, and fit for future generations.
Building on a Proven Model
The latest funding round builds on the success of the 2023–24 loan scheme, which injected over £75 million into the housing sector and brought forward more than 450 additional affordable homes. By continuing this innovative approach, the Welsh Government is demonstrating its long-term commitment to tackling the housing crisis, boosting affordable housing supply, and delivering real value for money.
Driving Regeneration and Resilient Communities
The Cabinet Secretary for Housing and Local Government, Jayne Bryant, recently visited the Michaels Grove development in Llanharan, managed by Valleys to Coast. Delivered through the previous loan programme, the scheme highlights the Welsh Government’s vision for mixed-tenure developments—bringing together homes for social rent, low-cost home ownership, and open market sales to create stronger, more resilient communities.
Speaking at the event, Jayne Bryant said:
“We have been listening and working closely with the sector to help them manage the escalating costs of building and borrowing. The homes at Michaels Grove showcase the real power of this type of funding—delivering high-quality, energy-efficient homes that are affordable to run and that enrich communities across Wales.
“We urgently need more affordable and sustainable homes for families today and for future generations. This funding demonstrates our commitment to exploring innovative, collaborative ways to increase housing supply and tackle the housing emergency head-on.”
Sector Applauds Welsh Government Support
Joanne Oak, Group Chief Executive of Valleys to Coast, praised the scheme’s impact, saying:
“This funding has enabled us to secure nine additional affordable homes for families as part of a wider acquisition of 20 homes at this development. We are grateful to the Welsh Government for its support in helping us deliver safe, secure, and affordable homes for local people. These investments allow us to build communities where our customers feel they truly belong.”
Tackling Wales’ Housing Emergency
With demand for affordable housing continuing to rise, this £90 million investment is a bold and proactive step towards addressing Wales’ housing emergency. By supporting RSLs with affordable finance, the Welsh Government is ensuring that more families, young people, and older residents can access homes that are affordable, energy-efficient, and built for the future.
This loan programme highlights the Government’s determination to work in partnership with the housing sector to deliver sustainable growth, improved housing quality, and thriving communities across Wales.
