By Peter Luck, Managing Director, ROCC
It was really pleasing to see NatWest’s announcement earlier this month, as they set a new £10bn funding ambition for UK social housing.
NatWest has committed to delivering £10 billion in funding to the UK social housing sector by the end of 2028, a timely contribution given the urgency of addressing a housing crisis that affects millions of people.
This new pledge builds on NatWest’s already decent track record of support for social housing, which has provided more than £25 billion in funding to the sector since 2018, helping to create and sustain affordable homes.
NatWest has stated that this funding aims to help “housing associations build new homes, upgrade existing properties, and improve living conditions”.
They’ve also said that “some of this lending can help fund energy efficiency and environmental improvements, including retrofit projects. Other funding can help the housing associations sector to deliver a pipeline of new homes and improve living conditions in existing properties”.
It’s still a major concern of mine that many people in the UK face unacceptable barriers to secure, affordable housing. The shortage of social homes restricts people’s ability to raise a family, build a life and contribute to a local community, with waiting lists that stretch for years.
That’s why I welcome this commitment from NatWest for several key reasons:
- It’s a clear, strategic and structured response to social need, at a time when it’s needed most. It appears to go beyond a token gesture and aims to deliver real change for the social housing sector.
- It would be very easy for NatWest to rest on its laurels after previous funding successes. However, they’ve chosen to build on those achievements, which sets a powerful precedent for other financial institutions.
- Financial institutions stepping into this space in a meaningful way could signal confidence to other investors. This can help unlock additional capital, particularly from those who may have been hesitant to allocate funds to social housing due to concerns about risk, returns or complexity.
- The UK continues to contend with rising homelessness and unaffordable housing pressures. When organisations step forward with capital and conviction, they help reduce pressure not just on families but on public services and the wider economy.
I would love this announcement to be seen as a call to arms across the financial sector. Social housing should not be seen as a charity; it should be positioned as an excellent investment opportunity in people and places with strong economic and social value.
Without commitments on the scale NatWest has set, the UK risks under-investing in one of the most basic determinants of wellbeing. We need more ambition, more collaboration and more capital flowing towards solutions that build affordable homes.
NatWest’s £10bn social housing funding ambition is a major step forward. Will others follow suit?
