Ethical and social bank Triodos has attributed an 18.5 per cent growth in lending to a rise in demand from the social sector.

In the first quarter of 2011 Triodos has reported an increase in lending of almost £60m in the UK with 75 per cent of this growth in the social sector.

Lending to housing associations represents 50 per cent of the growth and lending to charities and social enterprises increasing by 25 per cent.

Dr Bevis Watts, head of business banking said: “We believe the current economic situation continues to present a wide range of opportunities for social and community-focused businesses and we are committed to supporting their vision.”

He explained: “It is definitely an increase in demand from the sector – we have no particularly new products.”

Triodos only lends to businesses which add social, cultural or environmental value and recent customers include Utility Aid, Ruskin Mill Educational Trust, Nehemia Housing Association and Alnwick Community Development Trust.