Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
NatWest Launches £250m Loan Fund to Boost Affordable Housing Delivery
NatWest has introduced a £250 million Section 106 Loan Fund aimed at supporting housing associations in England to acquire affordable homes from housebuilders. The fund is designed to help unlock stalled housing delivery and increase the supply of affordable properties.
Section 106 homes are affordable properties delivered by housebuilders as part of planning agreements with local authorities. The new NatWest fund matches the £250 million of funding recently announced by Homes England as part of its £2.5 billion low-cost loan programme, bringing the total funding available for Section 106 acquisitions to £500 million.
The loan fund will be available to existing Housing Association customers who are successful in securing a Section 106 Low Cost Loan, effectively doubling their capacity to purchase Section 106 homes. According to the report, the funding could support the acquisition of around 2,500 Section 106 homes and facilitate the delivery of more homes for market sale. Loans will be offered at discounted margins and fees.
This initiative follows NatWest’s recent announcement of a £10 billion funding ambition for UK social housing by the end of 2028, which would take its total support for the sector to more than £35 billion since 2018.
For letting agents and inventory clerks, the increased funding for affordable housing may lead to more properties entering the rental market, particularly in areas where housing delivery has stalled.
Source: Mortgage Strategy