'An important milestone': £20m Northern Ireland social housing deal to help deliver hundreds of affordable homes for people on lower incomes

Ulster Bank has agreed a £20 million funding package with Radius Housing to support the construction of hundreds of new social rental homes across Northern Ireland.

The deal marks the first time a Northern Ireland housing association has secured funding through parent company NatWest's £1 billion Social Rent Loan Fund, which aims to boost the delivery of affordable homes across the UK.

Social rent homes provide affordable accommodation for people on lower incomes, with rents set significantly below private market rates.

The discounted loan, which is available to eligible housing association customers, offers reduced interest margins and no arrangement fee. The bank said the initiative is designed not only to support the construction of new homes but also to free up funding for housing associations to invest in existing communities.

Kenton Hilman, head of corporate and property at Ulster Bank, said the investment would help address growing housing need across Northern Ireland.

He explained: “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.”

Radius director of finance Alan Thomson 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.”

Legal advisers on the transaction also welcomed the agreement.

Drew Nesbitt, real estate development partner at Wilson Nesbitt, which advised Radius, said innovative funding models would play an increasingly important role in tackling housing demand.

"This transaction demonstrates the increasingly important role that innovative funding structures play in delivering much-needed social housing across Northern Ireland," he continued.

Louise Bailey, partner at A&L Goodbody, which advised Ulster Bank, added: "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."