Transforming Social Housing: £400 Million Backing to Accelerate Energy Efficiency Upgrades

Transforming Social Housing: £400 Million Backing to Accelerate Energy Efficiency Upgrades

(IN BRIEF) The National Wealth Fund has announced a significant financial guarantee of up to £400 million to support a series of new loans provided by NatWest Group for retrofitting social housing in the UK. The objective of this initiative is to help registered social housing providers reduce energy consumption and hasten the decarbonisation process of their properties. The loans, which will cover improvements such as energy-efficient heating and lighting, insulation, renewable energy systems, and ventilation upgrades, also address resilience and biodiversity. With the NWF guaranteeing 80% of each retrofit loan, up to a total of £500 million can be accessed, thus mobilising private capital and breaking down financing barriers in the sector. The program comes in response to the pressing need for energy upgrades, as a significant number of UK social homes have low EPC ratings or fail to meet the Decent Homes Standard. NatWest Group’s extensive market presence across the UK further reinforces its ability to deliver these retrofit solutions. The announcement was supported by both John Flint of the NWF and Paul Thwaite of NatWest Group, who underscored the importance of affordable, energy-efficient homes and the critical role of private finance in achieving this transformation. The loans are offered on an unsecured basis through multiple banking partners, with terms lasting up to 20 years.

(PRESS RELEASE) LONDON, 2-Apr-2025 — /EuropaWire/ — The initiative is designed to assist registered social housing providers in cutting down energy usage and fast-tracking the decarbonisation of their housing stock. Today, the National Wealth Fund (NWF) announced that it will provide a financial guarantee of up to £400 million. This guarantee will back a series of new loans arranged by NatWest Group, which are dedicated to retrofitting social housing throughout the UK.

These loans, echoing NWF’s earlier investments in social housing retrofits, are intended for eligible improvements. The measures include upgrading to energy-efficient heating and lighting, adding insulation, integrating renewable energy generation, enhancing ventilation and heating control systems, as well as implementing resilience measures and boosting biodiversity.

Under this scheme, the NWF will secure 80% of each retrofit loan originated by NatWest Group, with a total pool available of up to £500 million, translating into a commitment of up to £400 million. This financial backing is expected to attract private capital into the social housing sector by easing access to financing, thereby overcoming a major obstacle in deploying funds for necessary retrofits.

Currently, the UK has 4.5 million social homes, with 2.9 million owned by private registered providers. In England and Wales, 28% of these dwellings have an EPC rating of D or lower, and 10% fail to meet the Decent Homes Standard. The proposed loans aim to boost the pace of retrofitting and improve these figures significantly.

NatWest Group, with its substantial market presence and expertise in the social housing sector across England, Scotland, Wales, and Northern Ireland, is well-positioned to offer retrofit solutions to registered providers nationwide. The support from NWF has enabled NatWest Group to introduce these unsecured, mid-to-long duration loans on a larger scale, building on its earlier green retrofit pilots.

John Flint, CEO of the National Wealth Fund, stated, “Everyone should be able to live in a warm home with affordable energy bills. However, the scale of the retrofit challenge facing the social housing sector is clear and significant investment is needed now to ensure that residents across the UK have homes fit for the future. The NWF has an important role to play in mobilising the private finance that will underpin this transformation. Our support for NatWest builds on our work with other lenders, leveraging their reach and expertise to ensure that as many registered providers as possible have access to attractive financing.”

Paul Thwaite, CEO of NatWest Group, added, “NatWest continues to be a leading lender to the UK social housing sector, and last month we upgraded our lending ambition to £7.5 billion as demand continues to grow. Working with the National Wealth Fund on deploying £500 million of new loans means we can help retrofit more social homes across the UK at pace – supporting those who need it most.”

The loans are available through NatWest, Royal Bank of Scotland, and Ulster Bank on an unsecured basis and can extend for terms up to 20 years.

Notes to Editors

The loans are available through NatWest, Royal Bank of Scotland and Ulster Bank on an unsecured basis and for terms up to 20 years.

Sources:

1. Social landlords continue to build new homes, RSH statistics show – GOV.UK

2. Sources: Annex tables for English Housing Survey 2023 to 2024 headline findings on housing quality and energy efficiency – GOV.UK

Media Contacts:

James Abbott
Head of Financial Media
+44 131 523 4205
James.Abbott@natwest.com

Claire French
Media Relations Manager
Claire.French@natwest.com
+44 7581 066 380

Alex Dee
Media Relations Manager
Alexandra.Dee@natwest.com
+44 7967 865 819

SOURCE: NatWest Group