Lloyds agrees £100 million loan with Sovereign Network Group to accelerate retrofit of thousands of social homes

Lloyds agrees £100 million loan with Sovereign Network Group to accelerate retrofit of thousands of social homes

(IN BRIEF) Lloyds Banking Group has signed a £100 million loan agreement with Sovereign Network Group (SNG), one of the UK’s largest housing associations, to fund the retrofit of thousands of social homes across England. The deal, backed by the National Wealth Fund, is the bank’s largest loan commitment to date under its £500 million programme and follows a £60 million loan to Peabody in July. SNG plans to retrofit more than 15,000 homes to improve energy efficiency and sustainability, alongside a strategy to build 25,000 new homes by 2034. Executives from SNG, Lloyds, and the NWF stressed that the partnership illustrates how public-private collaboration can accelerate retrofitting, lower emissions, and create better, more cost-effective homes for social housing residents.

(PRESS RELEASE) LONDON, 28-Aug-2025 — /EuropaWire/ — Lloyds Banking Group has agreed a £100 million loan with Sovereign Network Group (SNG) to support the large-scale retrofit of thousands of social homes across southern, western, and eastern England, including London. The deal is the bank’s largest lending commitment so far under the National Wealth Fund (NWF)-backed programme and marks a significant step towards delivering warmer, greener, and more energy-efficient homes for UK residents.

The agreement follows a £60 million loan to Peabody announced in July, bringing Lloyds’ total lending under this scheme to £160 million – around 30% of its £500 million pledge to finance retrofits and sustainable housing development. The NWF initiative is designed to blend public and private sector investment in order to accelerate the transition to net zero and improve living standards for social housing tenants.

SNG, one of the UK’s largest housing associations, manages a portfolio of around 85,000 homes serving 210,000 residents. The group has identified more than 15,000 properties for its retrofit programme, aimed at improving insulation, energy systems, and other fabric performance measures to reduce costs and emissions while preserving long-term housing quality. Alongside this, SNG is pursuing an ambitious development strategy, with plans to deliver 25,000 new homes by 2034.

Peter Benz, Chief Financial Officer at SNG, said: “We are delighted to have secured this major funding agreement with Lloyds and the National Wealth Fund. This investment will accelerate our retrofit programme and sustainability strategy, while also supporting our Homes and Place Standard – our commitment to building good quality homes and creating thriving communities.”

Jess Tomlinson, Global Head of Real Estate & Housing at Lloyds Banking Group, added: “Collaboration between the public and private sectors is key to speeding up the retrofit of social housing. Our partnership with the National Wealth Fund demonstrates how innovative finance models can help providers like SNG upgrade homes, reduce energy use, and enhance affordability for residents.”

Stuart Nivison, Head of Portfolio Management at the NWF, underlined the importance of the initiative: “Our retrofit guarantee schemes are designed to make financing more accessible for registered providers. The completion of this transaction, coming just weeks after the Peabody loan, highlights growing momentum in the sector and underlines our commitment to scaling up the delivery of warmer, greener homes.”

This latest agreement highlights the growing role of partnership-driven finance in enabling housing associations to tackle the retrofit challenge, ensuring that social housing can keep pace with climate goals while providing safe and affordable homes for communities across the UK.

About Lloyds Banking Group

Lloyds Banking Group is a leading UK based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers. 

As part of the Group, Lloyds provides expert financial support and guidance to the households, businesses and communities of Britain.

We help businesses from all parts of the UK, and across all different sectors and sizes, giving them the funding and support they need to grow both at home and abroad.

We’re also helping British businesses transition to net zero, providing £26.5bn of sustainable finance to our business customers since 2022.

About SNG

SNG (Sovereign Network Group) is one of the largest housing associations in England, providing over 85,000 homes in areas facing some of the most acute housing need across London, South East, South West and East of England, with an ambition to build an additional 25,000 homes over the next decade.

SNG is a leading builder of affordable homes, including for social rent, and it has a clear pathway to maximise its social and environmental sustainability through its ambitious and pioneering Homes and Place Standard alongside its planned £100m Community Foundation.

SNG is a member of the G15 group of London’s largest housing associations. Its members house one in ten Londoners building a quarter of all London’s new homes, and owning or managing more than 770,000 homes.

SNG is also a member for Homes for South West, a group of leading housing associations working together to identify and tackle the barriers to new housing in South West England. We’re also member of CASE (Consortium of Associations in Southeast England) amongst 12 housing associations leading the campaign to build more affordable homes in the region. 

Media contact:

Nicola Hammond | Nicola.hammond@lloydsbanking.com | 07811 270107

SOURCE: Lloyds Bank plc