The £250m Section 106 fund is part of a recent commitment by the bank of a new £10bn funding ambition by the end of 2028, taking total support for the sector to more than £35bn since 2018.
The move will allow housing associations to acquire Section 106 homes, which 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, which NatWest said 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.
Paul Eyre, head of residential and housing finance at NatWest, said: “In February, we set out a £10bn ambition to support the delivery and maintenance of social housing across the UK. This new £250m 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.”
He said 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.
Steve Reed, Housing Secretary, said: “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.
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“We need to build more affordable homes to bring down the number of families stuck on housing waiting lists.”
The move follows NatWest’s pledge in February to lend £10bn to first time buyers to deal with the housing crisis.
New homeowners made up 30% of gross mortgage lending in 2025, and the group attributed some of this to its Family-Backed Mortgage, which accounted for around £300m of lending.
It is part of the bank’s five point Growing Together plan, setting out how it will help build the conditions for UK-wide growth.
The five points are backing powerful regions, championing mid-market companies, strengthening the country’s infrastructure and housing foundations, boosting financial confidence among families and young people, and supporting the innovators shaping the future economy.
