Deal will allow housing association to invest in heat pumps and new cladding

Together Housing Group has secured £50m of funding for sustainable upgrades to its 38,000-property portfolio across Yorkshire, Lancashire and the North Midlands. 

The group is the first housing association to secure money from the Royal Bank of Scotland’s new Green Housing Retrofit Loan pilot scheme. 

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Source: Shutterstock

The cash comes from RBS’ new Green Housing Retrofit Loan pilot scheme

The deal will allow THG to make sustainable retrofits such as the installation of ground and air source heat pumps, as well as the replacement of cladding, roofs and windows to its network of socially rented properties across more than 30 local authorities. 

THG will work with the ESG advisory team at RBS’ parent company, NatWest Group, to confirm the efficiency ratings of the planned upgrades. 

David Horne, director of housing finance at RBS, said: “We have built a longstanding relationship with Together Housing Group that dates back over 20 years and have worked in partnership with the team to support the strategic ambitions of the Together Group across the years.  

“With an increased focus on sustainable investment into existing properties to help their tenant base with energy bills and ensure the long term viability of the stock portfolio, this new funding will help with what is a significant retrofit challenge for Together and the wider sector.    

“Given the pilot nature of this transaction, it has taken some time to come to fruition and is a huge step forward for both the customer and the sector as a whole.” 

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Mark Dunford, executive director of finance and commercial at Together Housing Group, said: “We’re proud of the progressive steps we’ve taken as an organisation so far towards achieving our ambitious net zero priorities and we are thrilled to be the first social housing association receive this valuable funding. 

“Our carbon reduction strategy puts residents at the forefront as we strive to make essential retrofit adaptations to properties, ensuring they remain energy efficient for the benefit of current and future residents.”