Welsh government boosts loans for social landlords by £90m

The loan scheme was introduced by the Welsh government in 2023-24. It has already issued £75m in loans to registered social landlords to bring forward 450 new homes in the social sector. 

Jayne Bryant, cabinet secretary for housing and local government, announced the extension of the scheme on a visit to the Michaels Grove development in Llanharan, which was built under the previous loan scheme and managed by housing association Valleys to Coast.

Ms Bryant 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.”

Wales’s final Budget for 2025-26, published last month, includes a capital investment of just over £437m for developing new homes.

This year’s allocation for the Social Housing Grant is 18% higher than previous year, which stood at £370m. 

The Budget also includes an £81m uplift in funding for the Social Housing Grant and Transitional Accommodation Capital Programme, as well as an additional £21m for the Housing Support Grant, which funds frontline housing and homelessness services.