The announcement builds on NatWest’s wider commitment to the social housing sector, following its recent announcement of a new £10 billion funding ambition for UK social housing by the end of 2028, taking total support for the sector to more than £35 billion since 2018.
Section 106 homes are affordable properties delivered by housebuilders as part of planning agreements with local authorities.
In recent years, housing associations have faced increasing financial pressures, reducing their ability to acquire these homes at previous volumes.
This has had a knock-on impact across the housing market, with completed homes left vacant and new developments delayed due to uncertainty around S106 sales.
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, increasing total funding available for S106 acquisitions to £500 million. The fund will be available to existing Housing Association customers that are successful in securing S106 Low Cost Loan, which will double their capacity to purchase S106 homes.
Together, this funding could support the acquisition of around 2,500 S106 homes, while facilitating the delivery of thousands more homes for market sale.
The loans will be offered at discounted margins and fees.
Paul Eyre, Head of Residential and Housing Finance, NatWest said: “In February, we set out a £10 billion ambition to support the delivery and maintenance of social housing across the UK. This new £250 million S106 Loan Fund is a practical example of that commitment in action — helping housing associations in England unlock sites, bring affordable homes into use and support wider housing delivery at a critical time.”
Housing Secretary Steve Reed said: “We need to build more affordable homes to bring down the number of families stuck on housing waiting lists.
“Housebuilding is a national mission and businesses like NatWest will have a pivotal role to play in helping us unlock stalled housing sites across the country and build the homes we need."
Neil Jefferson, CEO, Home Builders Federation said: “With around half of Affordable Housing being delivered through the Section 106 cross-subsidy model, it is important that we have a functioning market for these much-needed Affordable Homes. Without Registered Providers to take on these homes, we’re seeing overall housing supply slow or halt entirely. Moves to unblock the market and encourage Registered Providers to acquire homes already subsidised by private subsidy are very welcome and will help to boost the supply of both Affordable and private homes.”
Kate Henderson, National Housing Federation Chief Executive said: “Section 106 is fundamental to ensuring affordable housing remains at the heart of mixed communities across the country. This product is strongly welcome and will support housing associations to continue investing in section 106 homes, as part of the sector's ambition to deliver a generational boost to social and affordable housing.”
The announcement is part of the bank’s five point Growing Together plan, setting out how the bank will help build the conditions for UK wide growth: backing powerful regions, championing mid-market companies, strengthening the country’s infrastructure and housing foundations, boosting financial confidence amongst families and young people, and supporting the innovators shaping the future economy. Drawing on its regional footprint, expertise and convening power, the bank aims to bring businesses, communities, and policymakers together to tackle structural barriers, unlock productivity and spread opportunity across the UK.
Notes to editors
Requirements and criteria:
- evidence of allocation from Homes England Low Cost Loan for purpose of S106 purchase required in an amount at least equal to S106 Loan amount
- product fees may apply; subject to credit approval and documentation; and
- security may be required
This press release is for media use only and is not a financial promotion.
About NatWest and social housing
NatWest Group is a UK-focused banking organisation, serving over 20 million customers, with business operations stretching across retail, commercial and private banking markets.
NatWest is a long‑standing supporter of the UK social housing sector, having provided more than £25 billion in commercial loans and capital market support to housing associations between 2018 and 2025.
In February 2026, the bank announced a new £10 billion funding ambition for UK social housing by the end of 2028, taking total support for the sector to more than £35 billion since 2018.
Through its housing initiatives, NatWest aims to support the delivery and upkeep of social and affordable homes across the UK, working with not‑for‑profit housing associations to help build new homes, maintain existing stock and improve living conditions. This includes funding to support new development, retrofit and energy efficiency improvements, and the long‑term sustainability of the social housing sector.
Caution about Forward-looking Statements in this announcement
This announcement contains forward-looking statements that are not historical facts, including, but not limited to, NatWest Group’s ambition to provide £10 billion in targeted lending and support to the UK social housing sector between 1 January 2026 and end 2028. The forward-looking statements of this announcement are based on current plans, information, and data. In preparing these, NatWest Group has made a number of key judgments, estimates, assumptions, and projections, and relied on information subject to those inherent uncertainties. Readers are cautioned that a number of factors, both external and those specific to NatWest Group, could cause actual achievements, results, performance or other future events or conditions to differ, in some cases significantly, from those stated, implied and/or reflected in any forward-looking statement in this announcement or result in revisions to the reported data. Therefore, no assurance can be given by or on behalf of NatWest Group as to the likelihood of the achievement or reasonableness of any aim, ambitions, estimates, plans, projections, targets, or other forward-looking statement contained herein.
Therefore, undue reliance should not be placed on these forward-looking statements.
This cautionary statement should not be regarded as a complete and comprehensive statement and should be read together with the ‘Risk Factors’ included on pages 408 to 426 of NatWest Group plc 2024 Annual Report and Accounts, as updated from time to time.
Caution on sustainability-related metrics
The processes we have adopted to define, collect and report data on our sustainability-related performance, as well as the associated metrics, are not subject to the formal processes adopted for financial reporting in accordance with International Financial Reporting Standards (“IFRS”) and it continues to involve manual processes. They involve a higher degree of judgement, assumptions and estimates, including in relation to the classification of sustainability-related (including social) funding and financing activities, than is required for our reporting of historical financial information prepared in accordance with IFRS. As a result, sustainability-related metrics may be amended, updated or restated over time.
Caution about sustainability-related financing
Sustainability-related (including social) financing and facilitation currently represents only a relatively small proportion of NatWest Group’s overall financing and facilitation activities. Accordingly, information relating to sustainability-related financing and facilitation should be read in the context of NatWest Group’s broader balance sheet, risk profile and financing and facilitation activities, and should not be interpreted as indicative of NatWest Group’s overall financing or facilitation strategy.
