Treasury-owned NWF will provide guarantees to enable ‘competitively-priced’ bank loans for social landlords
Barclays and Lloyds Banking Group have announced a plan to make £1bn in loans available for social housing retrofit projects.
The loans, described as “competitively priced” will be supported by up to £750m of financial guarantees provided by the Treasury-owned National Wealth Fund.
According to the 2023 English housing survey, 28% of housing association properties and 32% of council homes have an energy performance certificate rating below ‘C’.
John Flint, chief executive National Wealth Fund, said: “We know there are significant barriers to investment in the heat and buildings sector, despite it being a critical element of the UK’s net zero transition.
“By working with Lloyds Banking Group and Barclays to bring competitive offers to the market, we are helping registered providers access the attractive financing that they need to implement critical retrofit measures, reducing bills and improving comfort for social housing residents across the UK.”
>>See also: Starmer must do more to boost net zero by linking it with social housing policy
>>See also: We must stop squabbling and retrofit now – there is no time to lose
An agreement in principle has also been made between the NWF and The Housing Finance Corporation (THFC), a mutual funder to the sector, for a further £150m to help more registered providers gain access to longer term bond markets, which is expected to be announced in due course.
As of this week the National Wealth Fund is the new name for the UK Infrastructure Bank, which now has a wider remit than purely infrastructure financing. The NWF will be capitalised with £27.8bn to boost private investment in the market in support of the government’s industrial strategy.
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