The National Wealth Fund (NWF) has confirmed a £150m financial guarantee to support The Housing Finance Corporation (THFC) to provide long-term, unsecured loans for retrofiting social housing in the UK.
This marked the first instance of the NWF providing guarantees for this purpose to bond market investors.
Rothesay committed to the full initial investment, and THFC and NWF plan to increase the scheme to £250m in the next six months, depending on demand.
These loans will be used for low carbon heating, insulation, renewable energy, and other retrofit measures to reduce emissions in social housing.
Chancellor Rachel Reeves said: “Growth to get more money in people’s pockets is my number one priority.
“This new partnership will unlock £150m in private investment and create further jobs, building on the 6,500 jobs already expected in the retrofit sector across the UK, so more people can get sustainable, high-quality, energy-efficient social housing.
“The National Wealth Fund is mobilising billions of pounds of investment in our world-leading industries, creating jobs and kickstarting economic growth, as we deliver on the country’s priorities in our Plan for Change.”
John Flint, CEO at NWF, said: “This is another example of the NWF working collaboratively with the private and public sector to provide practical solutions to complex financing problems.
“The launch of a long-term, attractively priced, unsecured offer into the market by THFC, will accelerate uptake and increase the ambition of projects in retrofit.
“Our support for THFC builds on our work with banks, helping mobilise long-term institutional capital like Rothesay’s into social housing retrofit which will give confidence to both the sector and associated supply chains.”
Priya Nair, chief executive at THFC, said: “As the largest provider of institutional capital to the social housing sector, THFC is committed to solutions that enable the industry to improve homes and create sustainable communities across the UK.
“Partnering with the NWF on this innovative approach to retrofit funding will bring significant benefits to the sector. The collaboration will help decarbonise the social housing sector and support the country’s net zero ambitions.”
Tom Pearce, chief executive at Rothesay, said: “As a long-term investor in the UK, Rothesay is pleased to provide the funding for the launch of this new facility, supporting housing associations across the country to access the investment they need to reduce their environmental impact.
“Innovative partnerships like these have the potential to unlock significant volumes of institutional capital and we are committed to continuing to work with the NWF and THFC to support the growth of the facility along with other future initiatives.”
