Social homes to be retrofitted via government-backed fund

Lloyds Banking Group and Peabody have signed a £60m loan agreement to fund the sustainable retrofit of thousands of social homes across London and the Southeast.

The loan, partially guaranteed by the National Wealth Fund (NWF) is the largest issued to date under the government-backed £1.3bn social housing retrofit guarantee scheme.

The partnership between the public and private sector aims to deliver warmer, greener homes for social tenants, while supporting the UK’s broader net zero ambitions.

Phil Day, chief financial officer at Peabody, said: “This additional funding is very welcome and will help us improve the energy efficiency of more residents’ homes, making them easier to keep warm and helping us meet our net zero targets.

“Our new group strategy focuses on three areas, one of which is providing better homes and places, and we’re pleased to be able to work with Lloyds to help deliver on our goals.”

The funding will enable Peabody to carry out energy efficiency upgrades, including wall and loft insulation, low-energy lighting, heat pumps, solar panels, flood resilience measures, and water-saving technologies.

The Group’s chief executive Charlie Nunn, hosted The Social Housing Forum earlier today, which convened leaders from housing, finance, government and the third sector to discuss new approaches to modernising the UK’s housing stock, including accelerating the retrofit of social housing.

Jess Tomlinson, global head of real estate & housing, Lloyds Banking Group, said: “Accelerating the retrofit of the country’s social housing stock is a critical step in the UK transition to a low carbon economy.

“We’re proud to be working in partnership with the National Wealth Fund to enable housing associations, like Peabody, to provide more energy-efficient and cost-effective homes across the UK – helping improve health, work and home life for thousands of social housing residents.”