Platform Housing Group has secured a £235m sustainability-linked loan from Lloyds Bank to help it develop new affordable housing and decarbonise its existing portfolio.
The funding is Lloyds Bank’s biggest sustainability-linked loan for the social housing sector to date. It will be used to support Platform’s corporate strategy, which is centred on the provision of affordable, sustainable and quality homes to new and existing customers.
The association will be measured by three KPIs to secure margin discounts on the funding. The first of these is to improve the energy efficiency of its existing portfolio, by improving the fabric of buildings and introducing low carbon technologies to heat and power homes, as it pushes ahead with plans to move all of its homes to EPC C and above.
The second KPI will aim to increase the energy efficiency of all of its new-build properties, as it begins to ramp up development activities to above pre-pandemic levels of 1,500 homes a year, and improve its Standard Assessment Procedure scores up towards an average of A within the next five years. This will be supported in part by Platform’s recent Homes England bid, where grant of £250m was secured to develop approximately 4,600 homes, of which over 25% will be built using modern methods of construction.
The final KPI is linked to Platform’s strategic objective to invest in its colleagues and communities by increasing the proportion of those undertaking apprenticeships each year. The association has committed to increase the proportion of its total workforce in apprenticeships by 0.5% every year for the next five years.
Platform Housing Group is the largest housing associations in the Midlands, with a portfolio of around 47,000 homes serving over 100,000 people in the region. The association employs around 1,500 staff.
Rosemary Farrar, Chief Finance Officer at Platform Housing Group, said: “The Midlands has one of the most acute housing shortages in the country. That means developing stock that is both fit for purpose and fit for the future is crucial. We’re proud that our ambitions cover a range of ESG objectives and will deliver a housing portfolio that benefits the communities we operate in across the region.”
Jatinder Dhaliwal, Regional Head of Housing at Lloyds Bank, commented: “Platform Housing is committed to enhancing its ESG offering to its communities and within the social housing sector and we’re proud to help the association on its journey.
“This funding will make a lasting impact on the quality and availability of housing across the Midlands and we’re looking forward to working closely with Platform as it delivers its objectives.”
