The Welsh Government has reopened its Registered Social
Landlords (RSLs) Development Loan Scheme for 2025/26 and has
allocated £36 million to support the delivery of low-carbon homes
for rent in the social sector and help improve existing
homes.
The loans will enable RSLs to develop more affordable housing
whilst also addressing the pressing need for energy-efficient
homes across Wales.
Funding is flexible and can be used for new affordable housing
schemes and to improve existing homes to meet the Welsh Housing
Quality Standard (WHQS 2023).
Low-cost loans of between £1 million and £10 million will be
available, offering RSLs an affordable alternative to commercial
borrowing, providing value for money and maximising all avenues
to increase affordable housing supply.
This new round of loans will build on the success of
the previous £90 million loan scheme announced in March 2025
which is on course to deliver 277 affordable homes and improve
more than 4,000 homes.
Cabinet Secretary for Housing and Local Government, , recently met with Chanise
and Martin Brewer at their home in Llanrumney, Cardiff.
The couple was previously living in a two-bedroom home that was
too small for them and their four children. Thanks to previous
funding from the Welsh Government, Taff Housing was able to offer
them a larger, more spacious home where the family can
thrive.
They said: “We had given up hope of moving to a larger home to
meet our family's needs. We explored the private rental market,
but it was too expensive. The opportunity given to us to move by
Taff via the Welsh Government funding has changed our
lives.”
The Cabinet Secretary said: "We need more homes now and for the
future and that's why it's so important that we continue to
explore innovative ways to increase the supply of housing for
individuals and families across Wales.
“This £36 million investment matters - it will help deliver the
warm, energy-efficient homes that we need across Wales.
“By backing our housing providers through these challenging
times, we're not just building houses – we're creating
communities where people can thrive."
Taff Housing has received £10 million in previous rounds of loan
funding from the Welsh Government and is expected to deliver 35
homes, with 25 already secured.
Chief Executive Officer for Taff Housing, Helen White, said:
“Thanks to this £10 million low-interest loan from the Welsh
Government, we can secure 35 high-quality homes from the open
market and bring them into use as long-term affordable housing.
This means more families will have access to safe, secure and
energy-efficient homes much sooner, at a time when demand is high
across our communities.
“These two to four-bedroom homes are all EPC C and above and meet
the Welsh Housing Quality Standard, so residents will benefit
from warm, comfortable homes from day one. Bringing more homes of
this quality into our communities is another positive step in
increasing the supply of affordable housing for local
families.”
Executive Director of Business and Finance for Taff Housing,
Caroline Lawley, said: “This loan facility gives us the
flexibility to acquire much-needed homes quickly, without relying
on traditional grant funding, and make them available to families
who need them. We welcome this support and are proud to be
working in partnership with the Welsh Government.
“It is an investment that will have a positive impact on people's
lives, helping us bring good-quality, energy-efficient homes into
our communities. It also helps us deliver more homes in a
cost-effective way, allowing us to respond more quickly to local
housing need and ensure more families have a safe, secure and
comfortable place to call home.”
