Date published: 14 August 2023
Stonewater has secured £200m in funding from Lloyds Bank to support its continued expansion and improvement programme.
The organisation, which owns and manages around 36,000 homes for more than 78,000 customers, predominantly across central and the south of England, has refinanced its existing £125m facility and increased it by £75m.
The social housing provider also took the opportunity to transition to a sustainability-linked loan where it will be it measured against three KPIs to receive covenants on its funding.
It has committed to investing in retrofitting existing homes – which can reduce the amount of energy a home uses - to ensure its stock exceeds the current minimum regulations and achieves EPC C earlier than the 2030 milestone.
As part of the new agreement, Stonewater has also pledged to deliver new affordable homes that surpass minimum planning regulations in relation to energy efficiency measures, with a high percentage reaching SAP 86 and above.
Currently rated as 'Gold' in the SHIFT sustainability framework, an amalgamation of 15 separate ESG KPIs into one overarching score, Stonewater hopes to enhance its SHIFT score year-on-year, with the aim of achieving SHIFT 'Platinum' - an accolade which no other social housing provider currently holds.
Nicholas Harris, Stonewater’s Chief Executive Officer, said: "At Stonewater, it is our mission to provide our customers with a safe, well-maintained, and affordable place to call home and this additional investment is testament to our commitment to achieving that aim. We are passionate about reducing our environmental impact and as a result, our customers’ energy consumption. We’ve set robust sustainability targets both for our existing housing stock and future builds which this funding will help us to not only meet but to surpass."
Anne Costain, Stonewater’s Chief Financial Officer, added: "Housing associations face many challenges, ranging from supporting tenants through the rising cost of living to ensuring properties are fit for future generations. With Lloyds Bank’s support, we can improve and invest in our communities, and make them better places to live that are more sustainable, affordable, and future-proofed."
Ray Tierney, Regional Head of Housing at Lloyds Bank said: "Tackling climate change and meeting demand for quality housing are issues that will define the next decade. Stonewater is already taking the lead in meeting its responsibilities and we look forward to supporting them as they continue to be ambitious in being sustainable and helping communities across the UK."
