VIVID, one of the UK’s leading housing associations, has announced it has secured £100 million in funding from NatWest as part of the bank’s £500 million social loan fund.
This first-of-its-kind initiative by NatWest aims to tackle the UK’s housing crisis by providing ringfenced lending exclusively for the construction of social rent homes.
The facility offers discounted interest margins and no arrangement fees, enabling housing associations to save millions in finance costs and reinvest those savings into building and improving homes for those who need them most.
With over 1.3 million households currently on social housing waiting lists and living without the security of a stable home, this funding represents a significant step toward addressing the urgent need for affordable housing.
FINANCIAL FLEXIBILITY
David Ball (main picture), Chief Financial Officer at VIVID, says: “NatWest’s new social rent linked loan product gives housing associations the financial flexibility to build more homes at social rent levels.
“The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.”
AFFORDABLE AND SUSTAINABLE
Paul Eyre, NatWest Group Head of Residential and Housing Finance, adds: “This agreement has been made possible through NatWest’s dedicated social loan fund which has been ringfenced entirely for the building of social rent housing across the UK.
“It’s part of our ambition to lend £7.5 billion to the social housing sector before the end of 2026.
“It’s the latest loan agreement between NatWest and VIVID following a separate £125million investment earlier this year, and we’re delighted to continue supporting them in their goals of addressing a housing shortage in the South of England by building almost 900 affordable and sustainable homes, making a big difference for the communities they serve.”
