Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
NatWest Launches £250m Fund to Support Affordable Housing Acquisitions
NatWest has launched a £250 million fund aimed at helping housing associations in England purchase affordable homes from housebuilders under Section 106 agreements. The initiative is part of the bank’s wider commitment to provide £10 billion in funding for the sector by the end of 2028.
The new Section 106 fund is designed to support housing associations in acquiring affordable properties that are delivered by housebuilders as part of planning agreements with local authorities. According to NatWest, financial pressures in recent years have reduced the ability of housing associations to acquire these homes at previous volumes. This has led to completed homes being left vacant and delays in new developments due to uncertainty around Section 106 sales.
NatWest stated that the £250 million fund could support the acquisition of around 2,500 Section 106 homes. The loans will be offered at discounted margins and fees. The bank said this move is intended to help unlock sites, bring affordable homes into use, and support wider housing delivery.
This fund forms part of NatWest’s broader support for the housing sector, which has totalled more than £35 billion since 2018. The launch follows the bank’s February pledge to lend £10 billion to first-time buyers as part of its five-point Growing Together plan, which includes backing regions, supporting mid-market companies, strengthening infrastructure and housing, boosting financial confidence, and supporting innovation.
For letting agents and inventory clerks, the increased acquisition of affordable homes by housing associations could impact the availability and management of rental properties, particularly those delivered through Section 106 agreements.
Source: Mortgage Solutions