The National Wealth Fund (NWF), Barclays UK Corporate Bank, and Lloyds Banking Group have announced a major funding initiative to support the retrofitting of social housing across the UK.
This £1 billion package aims to improve energy efficiency and reduce the carbon footprint of social homes.
The new initiative, backed by up to £750 million in financial guarantees from the NWF, will see Barclays and Lloyds each provide £500 million in loans to social housing providers.
This blended financing approach is designed to meet various market needs, offering both shorter-term loans through Lloyds and mid-to-long-term loans through Barclays.
The funding aims to help housing associations retrofit properties with upgrades such as low carbon heating systems and improved insulation.
These measures are expected to create warmer homes, reduce energy bills for residents, and enhance overall living conditions.
While social housing is already among the most energy-efficient housing types, around 39% of social homes in the UK still have an Energy Performance Certificate (EPC) rating below C, highlighting the need for further investment.
John Flint, National Wealth Fund Chief Executive Officer, 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.”
Charlie Nunn, Chief Executive at Lloyds Banking Group, said: “Decarbonising our housing stock is critical for the transition to a low carbon economy, and there is urgent need for good-quality, greener homes which are warmer and more affordable to maintain.”
Matt Hammerstein, Chief Executive of Barclays UK Corporate Bank, said: “Our partnership with the NWF represents a significant milestone for the social housing sector and is an exciting example of the types of innovations which will be crucial to decarbonising the UK.”
