National Wealth Fund & Barclays on Transition Finance
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Diverging Reports Breakdown
VIVID and Barclays deliver first ever loan to retrofit social housing under £1.3bn NWF scheme
The £50m loan is the largest that can be issued under the National Wealth Fund’s scheme. The funds will be used to retrofit more than 4,000 homes in the UK. The money will be spent on energy efficiency improvements and renewable energy installations. The scheme is part of the UK’s plan to reduce carbon emissions by 30 per cent by 2025. The UK government has committed £1.3bn to the scheme since it was launched in 2010. It is the first time the scheme has been used to fund retrofitting of homes and businesses in Britain. The project is expected to be completed by the end of the year, with the first homes retrofitted in the spring of 2015.
Retrofitting to improve the energy efficiency of homes has come under renewed focus in recent years as it not only supports the decarbonisation of the economy under the UK’s commitments in the Paris Agreement but also reduces costs for tenants and helps alleviate fuel poverty.
Eligible retrofit measures under the NWF guarantee scheme include energy efficiency improvements (e.g. insulation, low energy lighting), heating upgrades (e.g. heat pumps), renewable energy installations (e.g. solar panels), resilience enhancements (e.g. flood resistance) and water efficiency measures.
Minister for Energy Consumers Miatta Fahnbulleh said: “This is fantastic news from VIVID and Barclays, securing the very-first loan backed by our National Wealth Fund to help deliver warmer homes and lower bills for thousands of people living in social housing.
“Our own Warm Homes Plan continues to pick up pace, with £1.8bn allocated to local authorities and social housing providers to deliver transformative upgrades like new insulation, solar and heat pumps.”
Mark Perry, Chief Executive, VIVID, commented: “We’re pleased to build on our partnership with Barclays through this groundbreaking £50m retrofit loan backed by the National Wealth Fund. This funding will support our goal to provide our customers with warmer, more energy-efficient homes and help reduce carbon emissions. It’s a positive development for both the environment and our community, and we look forward to seeing the benefits this investment will bring.”
Matt Hammerstein, CEO, Barclays UK Corporate Bank, said: “We are incredibly proud to have worked with VIVID and the National Wealth Fund to reach this important industry milestone. We’ve been supporting social housing sector clients for over 30 years and know how important it is to accelerate the decarbonisation of social housing across the UK. With over £10bn already extended to the sector, we’re committed to providing additional funding — including delivering £500m of retrofit financing under this scheme. We also remain driven to deliver on our own sustainability commitments to align our financing with net zero and support the transition.”
Stuart Nivison, Head of Portfolio Management, NWF, added: “We are excited to see VIVID sign this inaugural loan agreement with Barclays, taking advantage of the £1.3bn of financing the National Wealth Fund has guaranteed for social housing retrofit since October 2024. We would encourage as many registered providers as possible to reach out to Barclays and other lenders, make the most of this opportunity and help deliver warmer, greener homes fit for the future.”
Image ©wolfelarry/AdobeStock
VIVID and Barclays deliver first ever loan to retrofit social housing under £1.3bn NWF scheme
VIVID have secured the first loan to be backed by the National Wealth Fund’s £1.3bn social housing retrofit guarantees. The £50m loan is the largest that can be issued under the guarantee scheme and is being provided by Barclays, with a 70% guarantee from the NWF. VIVID will use the funds to enable the retrofitting of over 2,000 homes, supporting more than 4,000 people living in social housing.Retrofitting to improve the energy efficiency of homes has come under renewed focus in recent years. It not only supports the decarbonisation of the economy under the UK’s commitments in the Paris Agreement but also reduces costs for tenants and helps alleviate fuel poverty.Eligible retrofit measures include energy efficiency improvements (e.g. insulation, low energy lighting), heating upgrades and renewable energy installations. The first of the scheme deals announced in October 2024 can be found here: https://www.nationalwealthfund.org.uk/news/national-wealth-fund-barclays-uk-corporate-bank-and-lloyds-banking-group-join-forces-unleash.
Retrofitting to improve the energy efficiency of homes has come under renewed focus in recent years as it not only supports the decarbonisation of the economy under the UK’s commitments in the Paris Agreement but also reduces costs for tenants and helps alleviate fuel poverty.
Eligible retrofit measures under the NWF guarantee scheme include energy efficiency improvements (e.g. insulation, low energy lighting), heating upgrades (e.g. heat pumps), renewable energy installations (e.g. solar panels), resilience enhancements (e.g. flood resistance) and water efficiency measures.
Minister for Energy Consumers Miatta Fahnbulleh said: “This is fantastic news from VIVID and Barclays, securing the very-first loan backed by our National Wealth Fund to help deliver warmer homes and lower bills for thousands of people living in social housing.
“Our own Warm Homes Plan continues to pick up pace, with £1.8 billion allocated to local authorities and social housing providers to deliver transformative upgrades like new insulation, solar and heat pumps.”
Mark Perry, Chief Executive, VIVID, said: “We’re pleased to build on our partnership with Barclays through this groundbreaking £50m retrofit loan backed by the National Wealth Fund. This funding will support our goal to provide our customers with warmer, more energy-efficient homes and help reduce carbon emissions. It’s a positive development for both the environment and our community, and we look forward to seeing the benefits this investment will bring.”
Matt Hammerstein, CEO, Barclays UK Corporate Bank, said: “We are incredibly proud to have worked with VIVID and the National Wealth Fund to reach this important industry milestone. We’ve been supporting social housing sector clients for over 30 years and know how important it is to accelerate the decarbonisation of social housing across the UK. With over £10bn already extended to the sector, we’re committed to providing additional funding – including delivering £500m of retrofit financing under this scheme. We also remain driven to deliver on our own sustainability commitments to align our financing with net zero and support the transition.”
Stuart Nivison, Head of Portfolio Management, NWF, said: “We are excited to see VIVID sign this inaugural loan agreement with Barclays, taking advantage of the £1.3bn of financing the National Wealth Fund has guaranteed for social housing retrofit since October 2024. We would encourage as many registered providers as possible to reach out to Barclays and other lenders, make the most of this opportunity and help deliver warmer, greener homes fit for the future.”
Ends.
For further information please contact: charles.dart@barclays.com / ukpressoffice@barclays.com / sam.sinclair@vividhomes.co.uk
Notes to editors
The loan is being issued under Barclays’ £500m partnership with the National Wealth Fund to accelerate the retrofit of social housing. This partnership forms part of a wider series of retrofit guarantees the NWF has provided since October 2024, totaling £1.3bn.
More info on the first of the scheme deals announced in October 2024 can be found here: https://www.nationalwealthfund.org.uk/news/national-wealth-fund-barclays-uk-corporate-bank-and-lloyds-banking-group-join-forces-unleash
Additional quotes:
Jonathan Roberts, Group Treasurer, VIVID, said: “We’re thrilled to secure this landmark £50m loan from Barclays, the first under the National Wealth Fund’s social housing retrofit scheme. The retrofit challenge is significant but important for supporting and even changing our customers’ lives. This deal exemplifies the collaboration needed to meet this challenge. We’ve appreciated working with the Barclays team; they have been flexible, efficient, and a pleasure to work with.”
About VIVID
We’re a leading provider of affordable homes and extensive support services in the south of England.
Everyone has the right to a safe and secure place to call home and with a VIVID home our customers also have access to a wide range of tailored support to sustain their tenancies and look after their wellbeing. This is summed up in our vision “More homes, bright futures”.
We invest in communities and address the shortage of affordable housing in the south, building the right type of homes to meet society’s needs.
www.vividhomes.co.uk
@WeAreVIVIDhomes
About Barclays
Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities.
For further information about Barclays, please visit our website home.barclays