Lloyds Banking Group invests €115m in greener social housing

Lloyds Banking Group has committed a £100 mln (€115 mln) loan to Sovereign Network Group (SNG) to facilitate the retrofitting of social housing units throughout England, including London. 

Lloyds retrofit loan

This agreement represents Lloyds' largest lending commitment to date under the National Wealth Fund (NWF)-backed program, signifying a substantial advancement in providing warmer, more environmentally friendly, and energy-efficient homes for residents in the UK.
Following a £60 mln (€69 mln) loan to Peabody in July, Lloyds' total lending under this initiative has reached £160 mln (€185 mln), approximately 30% of its £500 mln (€578 mln) commitment to finance retrofitting projects and sustainable housing development. The NWF initiative combines public and private investments to expedite the transition to net-zero emissions and enhance living conditions for social housing tenants.
SNG, a major UK housing association managing approximately 85,000 homes for 210,000 residents, has pinpointed over 15,000 properties for its retrofit program. This program aims to improve insulation, energy systems, and overall building performance to lower costs and emissions while ensuring the long-term quality of the housing stock. In addition to retrofitting, SNG plans to construct 25,000 new homes by 2034 as part of its ambitious development strategy.
Peter Benz, CFO 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.”