The bank said that “recent government commitments” would unlock development and speed up delivery of social housing.

In response, NatWest is prepared to lend more to housing associations.

NatWest said it has already lent £25 billion to the social housing sector since 2018, both as commercial loans and capital market support.

Reeves said: “This government is backing a step change in affordable housing to end the housing crisis, with £39 billion for a new social and affordable homes programme and 10-year rent certainty for the sector.

“NatWest’s investment will be vital in helping housing associations deliver thousands of affordable homes for families priced out of home ownership, building an economy that works for and rewards working people.”

NatWest chief executive Paul Thwaite said: “We are incredibly proud to announce the early achievement of our £7.5 billion UK social housing lending ambition. Delivering this milestone a full year ahead of schedule demonstrates our commitment to making a real difference in people’s lives by investing in the homes and communities that need it most, and shows the demand in the market.

“Reaching this lending ambition early has enabled us to set a new target of £10 billion to year-end 2028, so we can continue to provide social housing lending and play our part in supporting the development and availability of affordable and social rent homes across the UK.”