Lloyds Banking Group has forged a major new partnership aimed at transforming the UK's social housing stock. The financial giant has agreed a substantial £195 million finance package with leading housing provider Orbit Group.
A Major Investment in Communities
The landmark deal is designed to fund significant upgrades for thousands of social homes located across the Midlands, East, and South East of England. The primary goal is to provide residents with markedly improved living standards, described by the partners as "warmer, safer and more affordable living conditions."
This initiative represents a collaborative effort drawing on expertise from across Lloyds Banking Group, including its investment arm Scottish Widows. The funding will be channelled into three key areas:
- Retro-fitting and improving existing homes.
- Enhancing overall customer experience for residents.
- Supporting the development of new and regenerated properties.
Driving Energy Efficiency Targets
A core component of the project is an accelerated programme of energy efficiency improvements. The investment will directly support vital upgrades such as better insulation and the installation of modern, energy-saving measures. This push is central to ensuring all affected homes achieve an Energy Performance Certificate (EPC) rating of band C or above by 2030.
These enhancements are expected to deliver a triple benefit: reducing household carbon emissions, lowering energy bills for residents, and contributing to the creation of healthier, more sustainable communities.
Industry Leaders Welcome the Deal
Anthony Homan, Finance Director for Corporate Finance & Group Reporting at Orbit Group, expressed his organisation's delight at the partnership. "This arrangement will support us in continuing to provide good quality, energy efficient, affordable and safe homes," he stated, emphasising the ongoing drive to "create inclusive and sustainable neighbourhoods."
Jess Tomlinson, Global Head of Real Estate & Housing at Lloyds Banking Group, highlighted the strategic nature of the agreement. "This finance agreement demonstrates how we can bring the full strength of Lloyds Banking Group to support clients like Orbit," she said. "By combining our banking and long-term investment expertise, we’re helping the sector deliver more sustainable homes and improve the living experience for residents."
The deal also involves the National Wealth Fund, which is providing financial guarantees. Stuart Nivison, Head of Portfolio Management at the Fund, noted: "Financial Guarantees provided by the National Wealth Fund are ensuring that lenders like Lloyds can continue to help registered providers access the financing that they need to deliver homes fit for the future."
Announced on 18 January 2026, this substantial investment underscores a growing focus on retrofitting the UK's existing housing stock to meet modern environmental and social standards, with major banking institutions playing a pivotal role.
