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, Jayne Bryant, 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.”
