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 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."