The funds will be used to build environmentally-friendly homes in northern England for tenants who are struggling to find accommodation amid the country’s housing crisis.
Harrogate Housing Association, a UK not-for-profit housing provider, has secured a £15m (£18.1m) loan from Triodos Bank UK, a unit of Netherlands-based sustainable lender Triodos Bank.
The loan will be used to develop 200 new homes in and around Harrogate, in North Yorkshire, England, with an energy performance certificate of B or above, which is the second-highest level of efficiency. Some new homes will be fitted out with air source heat pumps and solar panels, which will not only reduce emissions but also lower energy bills for tenants.
“This finance is very important for us as it enables us to go ahead with our plans to significantly increase the number of affordable homes we provide for the people of Harrogate,” said Steven Brook, chief executive of Harrogate Housing Association.
Housing crisis
Founded in 1968 to provide good quality homes at affordable rents, Harrogate Housing Association currently has a portfolio of just over 300 houses.
“We are passionate about making housing inclusive for local people, who might otherwise be pushed out by the high property prices in the area. With Triodos Bank’s support, we are delighted to be able to create more high-quality housing to support local families,” Brook said.
Some 8.5 million people in England are unable to access the housing they need, including two million children who live in overcrowded, unaffordable or unsuitable homes, according to a report published last year by the National Housing Federation, which represents housing associations in England.
Since 2008, Triodos Bank has provided £500m in loans to some 50 housing associations across the UK as part of its mission to deliver positive social or environmental impact.
New government
“We’re very pleased to support Harrogate Housing Association in its plans for growth; its ambitious development programme will help provide a significant number of much-needed affordable homes in the area,” said Peter Borgers, senior relationship manager in the lending team at Triodos.
The UK government, led by prime minister Keir Starmer of the Labour Party, was elected in July last year partly on a pledge to fix the country’s chronic housing shortage, promising to build 1.5 million new properties by the end of its first five-year term.
As previously reported by Impact Investor, the government in October met with leading figures from the country’s impact investment sector to mobilise funding for housing and other social priorities.
