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Warmer Homes & Green Community Loans

Innovative finance for housing associations to improve social housing living standards


  • Finance for housing associations to add energy efficiency measures and help alleviate fuel poverty.
  • Contribute to better health and well-being of tenants by creating green spaces, such as community gardens and children’s play areas.
  • Each bespoke loan is arranged through our team of specialist relationship managers.
  • We take no direct security at the outset of the loan – we would be reliant on the continued financial strength of the housing association

As an initiative to help alleviate fuel poverty and raise living standards for some of the UK’s most vulnerable residents, we’ve dedicated £15 million for social housing providers to make energy efficient improvements to current housing stock, and develop communal green spaces.

The pressure to prioritise new developments and increase density presents a challenge for housing providers looking to make green improvements. Even if housing providers show good financial track records, lenders have traditionally only been able to finance loans by taking security. As assets are committed for financing new developments, the need for this type of work is often unmet. To bridge this gap, we will take no direct security at the outset of these loans.

This is a bespoke product for housing associations. We arrange loans based on individual circumstances, with each case led by a specialist relationship manager. This means each borrowing customer has their own dedicated first point of contact, throughout the lifetime of their loan. We find this approach builds commercial relationships that last.

What are "green improvements"?

This loan must be used to finance improvements or create communal spaces, with a view to improving tenants’ living standards. This could include:

  • Energy efficiency measures, such as solar panels, insulation, ground source heat pumps or fuel efficient boilers for tenants’ properties.
  • Green spaces such as food growing areas, children’s play areas or other areas using nature to encourage healthier, more cohesive communities.

Indicative terms

The terms of each loan will depend on each housing association’s circumstances. However, as an indication, we would aim to offer finance based on the following:

  • Borrow from £300k to £3m
  • Repayable over 5 years
  • To make energy efficiency improvements or build communal green spaces
  • There will be no direct security taken at the outset of the loan – the bank would be reliant on the continued financial strength of the housing association. A security charge may be levied on unencumbered housing stock if the terms of the loan are breached.
  • Subject to agreed covenants based on net worth and interest cover
  • Interest margin of 2.75% over the Bank of England base rate for loans up to £1.5m, or 2.5% over base rate for loans over £1.5m
  • Fixed fee of 1% based on the value of the loan, payable on drawdown – no non utilisation fee

How to apply for this loan

This is a bespoke product for housing associations. The first step will be to speak with one of our specialist relationship managers to discuss your requirements.

Contact Neil Hewitt on 0117 980 9718 or email neil.hewitt@triodos.co.uk

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