South West landlord secures £20m RCF from NatWest

Westward pointed out that Devon and Cornwall has experienced a 400 per cent increase in average property prices in the past 25 years, largely due to the rising volume of second homes.

At the same time, the landlord said there is an “extreme shortage” of affordable housing. 

Paul Bryan, deputy chief executive of Westward, said: “The housing markets in both Devon and Cornwall are facing their own unique set of challenges.

“NatWest’s support will allow us to develop new homes and bolster our existing portfolio while also making improvements that will benefit the lives of the customers and families we’re already working with.”

The RCF from NatWest comes after the bank set out its plans in March to provide £5bn of lending to UK housing associations over the next three calendar years.

Dharmesh Patel, associate director at Natwest Commercial Mid Market, said: “NatWest is committed to supporting the UK’s social housing sector, and Westward is an example of a business that is directly helping the people in the communities it serves.”

Westward currently has the top grades of G1/V1 for governance and financial viability with the Regulator of Social Housing.

Earlier this month, the housing association appointed Stephen Lodge, who is currently executive director of development and strategic asset management at Abri, as its chief executive. He will succeed Barbara Shaw in October. 

According to its results for 2022-23, Westward Housing Group posted a pre-tax surplus of £7.9m, a rise from £6.4m in the previous year. During the year, the provider completed 69 new homes with a further 94 plots secured.

Benchmark Capital acted as Westward’s funding advisor on the RCF deal. Trowers & Hamlins was the housing association’s legal advisor, while Addleshaw Goddard provided legal advice to NatWest and JLL provided the valuation.