Lloyds Banking Group and Peabody partner on £60 million loan to retrofit thousands of social homes

Lloyds Banking Group and Peabody have announced a £60 million 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 £1.3 billion social housing retrofit guarantee scheme. The new and pioneering 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.

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

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.

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.

Stuart Nivison, Head of Portfolio Management, National Wealth Fund, said:

We’re pleased to see our financial guarantee scheme in action, playing an important role in this significant transaction between Lloyds and Peabody. The scale of the retrofit challenge facing the social housing sector is clear, and by working in partnership with Lloyds we can help registered providers like Peabody access the financing they need to accelerate the delivery of warmer, greener homes for their tenants.

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