£90m in low-interest loans to boost affordable housing and improve existing homes
£90m mewn benthyciadau llog isel i hybu tai fforddiadwy a gwella cartrefi presennol
The Welsh Government has made £90m in low interest loans available to Registered Social Landlords (RSLs) to deliver more homes for people across Wales.
The loans will help the housing sector with the escalating costs of debt and support the delivery of 277 affordable homes, with 119 to be delivered this Senedd term, and improvement works to 4,397 existing homes.
Improvement works will help bring homes up to the Welsh Housing Quality Standard, making sure they are affordable to heat and fit for the future.
The low-cost loans range between £5m and £10m and highlight the Welsh Government’s continued commitment to achieving value for money and maximising all avenues to increase affordable housing supply.
The Welsh Government successfully introduced the loan scheme in 2023-24, issuing more than £75m in loans to RSLs to bring forward over 450 additional homes in the social sector.
The Cabinet Secretary for Housing and Local Government, Jayne Bryant, recently visited the Michael Groves development in Llanharan managed by Valleys to Coast.
The homes were delivered under the previous loan scheme and help achieve our ambition for mixed tenure developments, bringing homes for social rent, low-cost home ownership and open market sales together to create stronger more resilient communities.
The Cabinet Secretary said: “We have been listening and working closely with the sector to help them navigate the escalating costs of building homes and borrowing.
“The homes here in Michaels Grove exemplify the real power of this type of funding to deliver beautiful homes that are affordable to run and that enrich our communities.
“We need more affordable and energy efficient homes now and for the future and it is so important that we continue to explore innovative ways to increase the supply of housing for individuals and families across Wales.”
Joanne Oak, Group Chief Executive of Valleys to Coast, said: "This funding has allowed us to secure nine additional homes for families as part of a wider acquisition of 20 homes at this mixed development site.
“We are grateful to the Welsh Government for its support in enabling us to deliver the best possible affordable housing solutions and support for local people, helping us create safe and happy homes and communities where our customers feel they belong.”
ENDS
Notes to editors
The loan scheme directly responds to recommendations made by Audit Wales and the Local Government and Housing Committee around exploring alternative funding methods, highlighting the Welsh Government’s continued commitment to maximising all avenues to increase affordable housing supply.