Stonewater agrees £100m funding package

Stonewater has agreed a £100m funding package to support the delivery of its 2030 corporate plan and ongoing national development programme.

The leading housing provider has confirmed a £50m, seven-year, fixed-rate loan with The Co-Operative Bank and a £50m, eight-year, variable-rate loan with Santander. Both are existing longstanding lenders to Stonewater, which owns and manages more than 40,000 homes across England.

These funds will support multiple national developments across Stonewater’s footprint in England and will also be used to boost retrofit and EPC works for its existing homes.

It will help support the next phase of this programme, which aims to improve the energy efficiency of 1,600 homes across Swindon, Wiltshire, Herefordshire, Dorset, Surrey and Sussex.

Santander’s agreement allows for sustainability-linked performance measures to be added. Stonewater aims to convert this loan to include sustainability-linked measures before the end of the financial year.

The team at Savills Financial Consultants, alongside legal advisors, Devonshires, consulted on the deal.

Anne Costain, Chief Finance Officer at Stonewater, said: "Securing new funding from our long-standing lending partners allows us to build more of the affordable, high-quality homes people need, right across the country.

“It will also support vital retrofit and energy efficiency works on our existing homes, helping us to improve living standards for Stonewater’s customers, lower energy bills and reduce our carbon emissions.

“We are committed to supporting the government’s 1.5m homes target and Decent Homes Standard and through this increased financial capacity, we can provide more homes, better homes and play our part in tackling the ongoing housing crisis.

"Both lenders were exceptional in their collaboration and delivery of the ask. We are looking forward to our continued relationships with them."

Adam Bartley, Relationship Director, Santander UK, said: “We are pleased to be supporting Stonewater as it takes the next step in its retrofitting journey. Stonewater continues to position itself as one of the leading social housing providers and we are delighted to be working with the team to deliver improved energy efficiency in hundreds of homes across the UK.”

John Rangecroft, Commercial Banking Manager at The Co-operative Bank, said: “In an era when more than 1 million households in England are waiting for social homes, and thousands of families are living in temporary accommodation, the funding we’re announcing today is a real step towards helping more people into safe, affordable homes. 

“For people and families facing down a cost of living crisis, energy bills are a significant concern. Some of this funding will also help improve energy efficiency across thousands more homes and reduce bills and money worries over the long term.

“Our specialist social housing team is committed to help partners like Stonewater turn crisis into opportunity – and we’re so proud to be working together to build and develop the homes many so urgently need.”