Ulster Bank is supporting the construction of hundreds of new social rental properties in Northern Ireland by providing millions of pounds in social rental loans to the social housing sector here.
The bank has just agreed a loan of £20m to support the largest local provider Radius, as part of the bank’s commitment to supporting the sector.
Social rent homes are designed to provide affordable housing for people on lower incomes and are let to tenants at significantly lower than private market rates.
Eligible housing associations that are existing customers of the bank can apply for the social rent loans which are incentivised with discounted interest margins plus no arrangement fee.
The aim of providing discounted loans for building social rent homes not only supports their construction but also enables housing associations to allocate funds towards improving living conditions within the communities they serve.
Ulster Bank’s parent group, NatWest, has a social rent loan fund of £1 billion to boost building of social rent homes across the UK.
Radius is the first housing association in Northern Ireland to complete a transaction with Ulster Bank under NatWest’s social rent loan fund.
Kenton Hilman, Head of Corporate and Property at Ulster Bank said: “Investing in safe, warm, and affordable housing for families isn’t just about shelter but an important investment in the long-term well-being, education, and economic prospects of children and their parents. Ulster Bank is playing its role in this by supporting the Northern Ireland social housing sector to build vitally needed social rental properties.”
Alan Thomson, Radius Director of Finance, said: “This funding represents an important milestone for Radius and demonstrates the value of innovative partnerships in addressing Northern Ireland’s housing need. The discounted social loan from Ulster Bank will enable us to invest in the delivery of additional high-quality, affordable homes while ensuring we continue to maximise value for our tenants and communities.”
“This funding also forms an important part of Radius’s ESG Strategy – ‘The Radius Sustainable Way’, underpinning our commitment to being a responsible and inclusive social landlord. As demand for social housing continues to grow, access to sustainable and cost-effective funding is critical to helping us provide homes that change lives and strengthen communities.”
Drew Nesbitt, Real Estate Development Partner at Wilson Nesbitt, legal advisors to Radius, said: “This transaction demonstrates the increasingly important role that innovative funding structures play in delivering much-needed social housing across Northern Ireland. As legal advisers to Radius, we were delighted to support a transaction that not only enables further investment into affordable homes, but also contributes to stronger, more sustainable communities. As housing needs continue to grow, we expect innovative funding solutions to play an increasingly important role in supporting housing associations to deliver new homes and create lasting social impact.”
Louise Bailey, Partner at A&L Goodbody, legal advisers to Ulster Bank, added: “We are delighted to have advised Ulster Bank on this significant social loan to Radius. The transaction demonstrates how innovative financing can support the delivery of much-needed affordable homes while creating lasting social value for communities across Northern Ireland. It was a pleasure to work with the Ulster Bank and Radius teams to bring this important funding to completion.”
