£36 million boost for greener homes

The Welsh Government has reopened a loan scheme for 2025-26, allocating £36 million to boost the supply of low-carbon social housing and upgrade existing homes across Wales.

The Registered Social Landlords (RSLs) Development Scheme offers low-cost loans of between £1 million and £10 million to help housing associations deliver more affordable, energy-efficient homes at a time of rising demand and financial pressure.

Ministers say the funding, which is available for both new developments and improvements to existing stock, will support progress toward meeting the Welsh Housing Quality Standard (WHQS 2023).

The latest round builds on a £90 million loan programme launched in March 2025, which is on track to deliver 277 affordable homes and upgrade more than 4,000 properties.

Announcing the reopening, Cabinet Secretary for Housing and Local Government Jayne Bryant said the investment would play a vital role in tackling housing need while supporting families struggling with rising living costs.

“We need more homes now and for the future, which is why it’s so important that we continue to explore innovative ways to increase supply,” she said. “This £36 million investment will help deliver the warm, energy-efficient homes Wales needs. By backing our housing providers, we’re not just building houses – we’re creating communities where people can thrive.”

Bryant recently visited the Llanrumney home of Chanise and Martin Brewer, who had been living in a cramped two-bedroom property with their four children. Thanks to funding awarded in a previous loan round, Taff Housing was able to move the family into a larger, more suitable home.

“We had given up hope of moving to a larger home,” they said. “The private rental market was too expensive. The opportunity given to us through Welsh Government funding has changed our lives.”

Taff Housing, which received £10 million in earlier loan rounds, expects to deliver 35 new homes, with 25 already secured. The homes—ranging from two to four bedrooms—meet EPC C or above and comply with WHQS standards.

Affordable housing

Taff Housing chief executive Helen White said the loan scheme was allowing the organisation to acquire high-quality homes from the open market and convert them into long-term affordable housing much more quickly than traditional grant routes.

“This means more families will have access to safe, secure and energy-efficient homes at a time when demand is high,” she said.

Executive director Caroline Lawley added that the flexibility of the loan facility “helps us respond more quickly to local housing need and ensure more families have a comfortable place to call home”.