The housing crisis continues to be one of the defining social and economic challenges of our time. Across the UK, and acutely in regions such as Greater Manchester, the rising demand for genuinely affordable and social rented homes is placing increasing pressure on local authorities, communities, and the organisations striving to deliver solutions. At the recent Greater Manchester Mayor’s Charity roundtable, I had the privilege of joining leaders from housing associations, local government, policy, finance and development to explore what it will take to unlock delivery at scale. The discussion was honest, collaborative and solutions‑focused – and it underscored the critical role that finance, partnership and long‑term commitment must play. 

Greater Manchester authorities spent £77.5 million on temporary accommodation in 2024/25, diverting vital resources away from long‑term social housing and preventative support. Without sufficient supply of social rented homes, councils are forced into short‑term measures that carry high financial and social costs. The roundtable reinforced what many in the sector know well: tackling homelessness and housing insecurity requires systemic, sustained investment in supply, not stopgaps.

Yet viability gaps continue to widen. Rising construction costs, fragmented funding mechanisms and delays in planning compound the challenge of bringing forward social and affordable schemes. Delegates called for more streamlined funding routes, improved clarity from national programmes, and stronger risk‑sharing mechanisms – including guarantees and blended finance models – that can attract the right long‑term capital. 

At NatWest, we recognise that social housing is not simply a segment of the real estate market – it is critical national infrastructure that underpins community stability, workforce mobility and regional growth. This belief has shaped our strategy in recent years, and it continues to guide our commitments.

During 2024 and 2025, NatWest delivered £8.7 billion in social housing lending, exceeding our 2024 - 26 £7.5 billion ambition a year early. We have since increased our ambition to £10 billion between 2026 and 2028, signalling our long‑term intent to be a leading partner to the sector.  

Our pioneering £500 million Social Loan Scheme, launched in July 2025 and increased to £1 billion by December due to strong demand, is specifically designed to support the delivery of new social rented homes with discounted rates and no arrangement fees. This product reflects a deliberate pivot towards financing that places affordability and social need at its core.

We are also supporting major investments in retrofit – an area where the sector must make rapid progress to meet climate expectations and protect residents from rising energy costs. Through our £500m NatWest Retrofit scheme, supported by £400 million in guarantees from The National Wealth Fund, we are working to accelerate decarbonisation of existing stock.

The roundtable reiterated that climate and social goals cannot be addressed in isolation. Retrofit is essential – not only for emissions reduction, but for improving the quality, affordability and resilience of homes. NatWest’s 2025 Climate Transition Plan places housing associations among the priority sectors for climate‑aligned finance, recognising the elevated exposure to energy efficiency, regulation and physical climate risk.

Our ambition to provide £200 billion in climate and transition finance by 2030 includes a strong focus on property‑related decarbonisation and retrofit, ensuring social housing providers can access the capital and advisory support needed to upgrade homes at scale.

We see this as integral to our purpose: turning possibilities into progress for people, communities and the wider UK economy. 

Across the roundtable discussions, a consistent theme emerged: no single organisation can solve the social housing challenge alone. Systemic barriers – from fragmented funding structures to constrained planning capacity – require collective, cross‑sector action.

Participants highlighted opportunities to:

• Strengthen alignment between health, housing and social care to improve long‑term viability.
• Pool responsibilities for land remediation to unlock difficult sites.
• Leverage pension funds and institutional investors through clearer risk‑balanced propositions.
• Improve planning capacity and explore fast‑track routes for genuinely affordable housing.
• Adopt mixed‑tenure development strategies that enable social rent delivery at sustainable levels.

At NatWest, we see ourselves not just as a lender but as a convener and catalyst – helping connect capital, policy and local ambition. Our regional presence, deep sector expertise and partnership approach position us to play a constructive role in shaping and supporting new models, including blended finance, guarantee‑backed structures and regenerative place‑based strategies.

One of the most encouraging outcomes of the session was the collective willingness to move from discussion to action. Delegates agreed to explore:

• mapping legislative and structural barriers to prioritise lobbying efforts;
• preparing proposals for the National Housing Bank guarantee scheme;
• testing new partnership models across Greater Manchester’s integrated funding landscape.

These next steps align strongly with NatWest’s broader ambition to enable balanced, sustainable growth across the UK – a theme championed by our Chief Executive, Paul Thwaite, who has emphasised the need for banks to act as builders of growth, not observers. Housing, he notes, is foundational economic infrastructure: without it, labour mobility, community resilience and productivity are constrained. 

The roundtable reinforced the urgent need – and the shared appetite – to accelerate delivery of social and genuinely affordable homes. It also reaffirmed our belief that finance has a critical role to play, not just in funding units but in driving system‑wide progress through innovation, partnership and long‑term commitment.

As we look to the years ahead, NatWest will continue to support the sector with:

• scalable, affordability‑focused lending solutions,
• decarbonisation and retrofit finance,
• regional engagement and partnership building,
• and a purpose‑led commitment to strengthening communities.

The challenge is significant – but with collaboration, aligned incentives, and a relentless focus on outcomes, it is absolutely solvable. And NatWest stands ready to play its full part.