Housing association VIVID has secured £100m in funding from NatWest as part of the bank’s £500m social loan fund.
VIVID is the first to draw down funds from the fund, which is designed to accelerate the delivery of social rent homes across the country.
The housing association will use the loan, which is on a 10-year term, to finance the delivery of an additional 450 new social rent homes.
David Ball, chief financial officer at VIVID, said: “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.”
Paul Eyre, group head of residential and housing finance at NatWest Group, added: “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 £7.5bn to the social housing sector before the end of 2026.
“It’s the latest loan agreement between NatWest and VIVID following a separate £125m 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.”
Forhad Ahmed, senior associate, real estate finance security at Trowers & Hamlins, said: “We are delighted to have advised VIVID on securing £100m from NatWest as part of their landmark £500m social loan facility. This first-of-its-kind initiative demonstrates innovative financing in the social housing sector and will enable VIVID to deliver much-needed affordable homes across the country.”
Anna Clark, legal director for Bevan Brittan, added: “We are so pleased to have once again supported VIVID in completing another landmark loan facility to further assist with the delivery of much needed social housing.”
