Adra, the largest housing association in North Wales, has secured a £20 million Social Loan and £45 million refinance package from NatWest to accelerate the delivery of new social rent homes – a deal that lands squarely in the middle of the UK government’s push to increase housing supply and improve the quality of the nation’s housing stock.
Formed in 2010 following a stock transfer from Gwynedd Council, Adra manages more than 7,000 homes and serves over 16,000 customers across North Wales. Its core mission is simple but increasingly urgent: provide good quality, affordable homes while maintaining existing properties and supporting the communities around them.
This latest funding is notable not just for its size but its structure. Adra is the first Welsh housing association to complete on NatWest’s new Social Loan product, a financing tool specifically designed to support the development of social rent properties. In practice, that means money ring-fenced for homes that meet clear social criteria – and that directly supports public policy goals on housing, levelling up and local economic resilience.
Treasury advisers Savills Financial Consultants supported Adra on the funding, helping to structure the package in a way that underpins its long‑term development plans and investment in North Wales communities.
Much of the new development is expected to reach EPC Band A, aligning with the UK’s net zero ambitions and wider global efforts to improve the energy performance of housing. More energy-efficient homes mean lower bills for tenants, reduced pressure on household finances and a smaller carbon footprint – all of which play into international ESG agendas and the transition to a greener economy.
Rhys Parry, Director of Resources at Adra, said:
“Adra is proud to be the first Welsh housing association to secure a Social Loan with NatWest, an important milestone that will directly support the delivery of much‑needed new Social Rent homes across North Wales.
“This investment enables us to accelerate our development programme, with most new homes achieving EPC Band A, ensuring they are energy‑efficient, sustainable, and affordable for the long term.
“We also greatly value the extension of Sustainability‑Linked Loan metrics to our Term Loan, which reflects both the strength of Adra’s long‑standing relationship with NatWest and our shared commitment to progressing ESG priorities.”
Martin Skinner, Director of Housing Finance, Commercial Mid-Market at NatWest, said:
“This is a significant transaction for Adra and for the Welsh housing sector, supporting the delivery of high-quality energy-efficient homes at scale. It shows how well-structured finance can directly back social housing delivery while aligning with long-term ESG priorities.”
Alex Morgan, Director at Savills Financial Consultants, said:
“This funding gives Adra the certainty and flexibility to move forward with its development plans at pace. The structure aligns long-term investment with both growth and sustainability objectives, supporting the delivery of much needed affordable homes across North Wales.”
Alongside the Social Loan, the extension of sustainability-linked metrics to Adra’s term loan ties financing more closely to environmental and social outcomes – a model increasingly watched by investors and policymakers as they look for scalable ways to mobilise private capital for public good.
For North Wales, the implications are immediate: more social homes, better standards and investment anchored in local communities. For the wider economy, it is another example of how targeted finance can help bridge the gap between housing policy ambitions and delivery on the ground.
NatWest recently announced a new £10 billion funding package for the UK’s social housing sector before the end of 2028, which when deployed will bring NatWest Group’s total funding to social housing in the UK to over £35 billion since 2018.
