Peabody secures £60m loan deal with Lloyds to improve the energy efficiency of thousands of homes

Peabody secures £60m loan deal with Lloyds to improve the energy efficiency of thousands of homes.

Published: 07/07/2025

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We have secured a £60m loan from Lloyds Banking Group to help improve the energy efficiency of thousands of residents’ homes. The work will reduce the need for as much heating, help lower residents’ energy bills, and reduce our carbon footprint.

The loan will be used to make energy efficiency improvements, such as adding solar panels, loft and wall insulation, low-energy lighting, heat pumps and water-saving technologies to residents’ homes. The money is partially guaranteed by the government’s National Wealth Fund (NWF), which has set aside £1.3bn to guarantee what’s known as retrofit work.

A building’s energy efficiency is measured using an Energy Performance Certificate (EPC) rating. The higher the rating, the easier the home is to keep warm and therefore the less residents must pay to heat it. More than 80 percent of Peabody homes have an EPC rating of C or above and the Group is working hard to meet its target of all rented homes having a rating of C or above by 2030.

Phil Day, Peabody’s Chief Financial Officer, said: “This additional funding will help us improve the energy efficiency of more residents’ homes, making them easier to keep warm and helping us meet our net zero targets.  

“Our new Group Strategy focuses on three areas, one of which is providing better homes and places, and we’re pleased to be able to work with Lloyds Bank to help deliver on our goals.” 

 Jess Tomlinson, Global Head of Real Estate & Housing, Lloyds Banking Group, said: “Accelerating the retrofit of the country’s social housing stock is a critical step in the UK transition to a low carbon economy.

“We’re proud to be working in partnership with the National Wealth Fund to enable housing associations, like Peabody, to provide more energy-efficient and cost-effective homes across the UK – helping improve health, work and home life for thousands of social housing residents.”