In a significant move for the UK's social housing sector, high street banking giant Santander has finalised a major £310 million refinancing package with Peabody, one of the country's largest not-for-profit housing associations. The deal, announced on 18 December 2025, is designed to bolster Peabody's extensive regeneration and development plans.
Details of the Landmark Funding Package
The substantial financial agreement comprises two key elements: a £125 million revolving credit facility and a separate £185 million term loan. This injection of capital is earmarked to support Peabody in its ongoing mission to manage, maintain, and develop its portfolio of nearly 109,000 homes across London and the surrounding Home Counties.
Beyond just housing stock, Peabody's responsibilities extend to the community centres, play areas, and green spaces that serve these neighbourhoods, ensuring they remain vibrant and well-maintained for residents.
Strengthening a Long-Term Partnership
Jane Johnstone, Head of Social Housing at Santander Corporate and Commercial Banking, emphasised the bank's commitment to the affordable housing agenda. "We are delighted to be strengthening our relationship with Peabody as they continue to provide a solution to much needed affordable housing," she stated. Johnstone highlighted that Santander has been lending to housing associations for over 25 years and sees this deal as part of its role in forwarding positive, long-term change.
Phil Day, Chief Financial Officer at Peabody, expressed his pleasure at securing the agreement. "It simplifies the structure of our debt with the bank and will help us continue with our plans to invest in residents’ homes so they’re safe, warm, and well-maintained," he said. Day added that the funding would also assist in efforts to build much-needed new homes and that Peabody looks forward to building further on its relationship with Santander.
Implications for London and the Home Counties
This refinancing deal represents one of the largest of its kind in the social housing sector. It provides Peabody with crucial financial stability and flexibility to pursue its large-scale investment programmes. For the tens of thousands of households in Peabody properties, the agreement signals a sustained commitment to improving existing homes and increasing the supply of new, affordable housing in a high-demand region, directly addressing a key government focus.
