VIVID, one of the UK’s leading housing associations, has announced it has secured £100 million in funding from NatWest as part of the bank’s £500 million social loan fund, designed to accelerate the delivery of homes for social rent across the country. VIVID is the first to draw down funds from this. This first-of-its-kind initiative by NatWest aims to tackle the UK’s housing crisis by providing ringfenced lending exclusively for the construction of social rent homes. The facility offers discounted interest margins and no arrangement fees, enabling housing associations to save millions in finance costs and reinvest those savings into building and improving homes for those who need them most. With over 1.3 million households currently on social housing waiting lists and living without the security of a stable home, this funding represents a significant step toward addressing the urgent need for affordable housing. This funding will make a real difference – helping to ease the shortage of social homes, support vibrant local communities, and give VIVID the flexibility to keep building where it matters most. It will go towards building an additional 450 new social rent homes for more customers and comes with a 10-year loan term, providing stability for long-term investment. Social rents are significantly lower than private rents, making them far more affordable for our customers. In our operating areas, they’re typically 50–60% cheaper than an equivalent private rental. This means we can provide a secure home for around 970 people currently on Local Authority housing lists.  David Ball, Chief Financial Officer at VIVID, said: “NatWest’s new social rent linked loan product gives housing associations the financial flexibility to build more homes at social rent levels. The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.” Paul Eyre, NatWest Group Head of Residential and Housing Finance, said: “This agreement has been made possible through NatWest’s dedicated social loan fund which has been ringfenced entirely for the building of social rent housing across the UK. It’s part of our ambition to lend £7.5 billion to the social housing sector before the end of 2026.  It’s the latest loan agreement between NatWest and VIVID following a separate £125million investment earlier this year, and we’re delighted to continue supporting them in their goals of addressing a housing shortage in the South of England by building almost 900 affordable and sustainable homes, making a big difference for the communities they serve.”  Forhad Ahmed, Senior Associate, Real Estate Finance Security at Trowers & Hamlins LLP, said: “We are delighted to have advised VIVID on securing £100 million from NatWest as part of their landmark £500 million social loan facility. This first-of-its-kind initiative demonstrates innovative financing in the social housing sector and will enable VIVID to deliver much-needed affordable homes across the country.” Anna Clark, Legal Director for Bevan Brittan LLP, said: ““We are so pleased to have once again supported VIVID in completing another landmark loan facility to further assist with the delivery of much needed social housing. “ The £500 million fund forms part of NatWest’s wider £7.5 billion lending ambition to the social housing sector by the end of 2026, reinforcing its commitment to supporting sustainable housing solutions. Building, Design & Construction Magazine | The Choice of Industry Professionals

By Mark Hall-Digweed, Partner, Carter Jonas (Infrastructure) Introduction Yesterday’s Budget was billed as a defining moment for economic growth. On first impressions, it appears to have been a constructive day for infrastructure. There were ample mentions of infrastructure in the Budget Report – no fewer than 76 uses of the word ‘infrastructure’ in fact. Much of it was retrospective but there were several positives too. Heathrow runwayTuesday’s pre-Budget support for the extended Heathrow runway was perhaps the most significant announcement from my point of view. But while aviation capacity matters, so too do the fundamentals that affect every household, along with the need for every household to be serviced by transport and utilities. Electricity networks in many areas are already at their limits, and developers are struggling to secure timely connections for new communities. Sewerage systems are under strain too, and strategic water infrastructure has not kept pace with population growth. The same applies to the national energy system. Significant upgrades are needed to the transfer of power across the country. While the Great Grid upgrade starts to address the challenge of moving wind generated power from offshore, and moving coastal nuclear power inland, local distribution will require concurrent activity by DNOs.  Many renewable energy systems suit localised consumption, but storage technology is the conundrum that the government has the key to unlock.  Yesterday’s R&D budget could play an important role in driving innovation in this area. Setting out support for Heathrow ahead of addressing these essentials feels like an unusual sequencing choice. Small Modular Reactors (SMRs)The government has published an updated Green Financing Framework, adding nuclear energy to the list of eligible expenditures for green financing (with some exclusions). This goes some way to support the role of nuclear energy as a green energy superpower and is welcome, as is the decision to place the next generation of nuclear technology at Rolls-Royce in Derby. Continued funding for SMR development is welcome. Nuclear is central to a resilient energy mix. But until there is a commitment to the strategic grid upgrades required to move power from a likely SMR site on the coast to homes and businesses across the country, the impact will remain limited. New towns We had hoped for more commitment to the funding of new towns in this Budget. New towns need a commitment to infrastructure from day one, and this appeared to be an omission. Overall, the New Towns Taskforce estimates that its recommended locations could contribute at least 300,000 new homes in the coming years, but they will not be delivered successfully without the utilities, transport links or energy capacity needed to support them. Landfill Tax The Budget states that the government will not converge the two rates of Landfill Tax, as consulted on earlier this year, recognising that the proposed changes imposed costs on businesses and could potentially undermine the government’s housing targets. Instead, the government has committed to preventing the gap between the two rates of Landfill Tax from getting any wider over the coming years and will retain the tax exemption for backfilling quarries to ensure that housebuilders and the construction sector continue to have access to a low-cost alternative to landfill. This is good news for both new towns and development more generally, as if the current landfill tax is expanded to include soil removed from sites, the cost of delivery of everything from a pipeline to a housing estate will rise significantly. Depoliticising infrastructure This government staked much of its early political capital on making the case that simplifying infrastructure delivery and attracting investment into schemes would underpin economic growth. Infrastructure remains one of the strongest levers available to drive that growth, as the Chancellor appeared to agree in her introduction to the Budget. But there is a risk that the political capital spent so far has not been enough. Developers and investors alike want the government to go further and faster, particularly in planning reform and strategic delivery. The devolution of £13bn in flexible funding for seven mayors across England is a step in the right direction, but more will be needed to unlock delivery at scale. Using the Budget to reinforce that ambition could have been the moment that puts major projects on the faster track they need but unfortunately this hasn’t been realised. Conclusion Although politics and infrastructure operate across different timeframes, yesterday’s Budget included positives for energy, transport and utilities. In this respect, the Chancellor has reaffirmed her commitment to growth through the built environment, and our sector should feel more confident in its ability to respond. Building, Design & Construction Magazine | The Choice of Industry Professionals