NatWest Launches £500m Social Rent Housing Fund Amid Record Demand

NatWest has unveiled a landmark £500 million lending facility aimed at accelerating the construction of social rent homes across the UK.

The initiative, announced on July 21, is part of the bank’s broader £7.5 billion commitment to the social housing sector by 2026.

The fund is ringfenced for housing associations that are existing NatWest customers, offering discounted interest margins and no arrangement fees.

According to the bank, these financial incentives could save the sector up to £25 million in borrowing costs, capital that could be redirected toward building new homes or upgrading existing stock.

The move comes as the UK grapples with a deepening housing crisis. Government figures show more than 1.3 million households are currently on social housing waiting lists, with 145,000 children living without the security of a stable home.

The National Housing Federation has called for 90,000 new social rent homes to be built annually for the next decade to meet demand.

NatWest CEO Paul Thwaite described the fund as “a step in the right direction to help those who need it most,” adding that the bank is proud to play a role in supporting housebuilding efforts. The announcement follows a separate agreement with the National Wealth Fund, which will guarantee up to £400 million to support retrofitting loans for existing social homes.

The Royal Foundation’s Homewards programme, which partners with NatWest, welcomed the announcement. Programme Director Liz Laurence said the fund “demonstrates the kind of collective response needed to tackle homelessness.”