Adra Housing, North Wales’ largest housing association, has announced it has secured a 40 million, five-year sustainability-linked loan from its new banking partner Lloyds Bank. Housing Industry Leaders explores how this will help to build more homes and improve energy efficiency.
The association currently provides more than 7,000 homes to 15,000 residents across North Wales and employs over 340 people. It will qualify for discounts on this latest funding by hitting a range of EEG KPIs.
There Is A Need For Affordable Housing In Wales
It is said that over the next five years, Adra Housing is aiming to use the funding to ensure that 90 per cent of its new build homes have the highest energy efficiency rating of EPC A and retrofit more than 450 of its properties to improve their efficiency by a minimum of 8 per cent.
In addition, it will also support more than 350 residents into employment through apprenticeships or work placements.
Rhys Parry, Director of Resources at Adra Housing, explained how crucial it is that affordable and sustainable housing is being supported: “Delivering on the need for quality, affordable housing for North Wales residents in a sustainable way runs to the heart of what we do.”
It’s why we’ve set ambitious objectives over the past few years and chosen to work alongside Lloyds Bank, who share our commitment to creating a fairer, greener society.
Adra Housing is one of only seven associations in Wales to adopt the industry-led Sustainability Reporting Standards for Social Housing.
The sustainability-linked loan Adra Housing has secured enables it to continue its pursuit of being net zero by 2030.
People’s Lives Will Be Improved Through The Funding
Christopher Yau, Director of Origination and Sustainability for Housing and Head of the North West Corporate Banking team at Lloyds Bank, expressed that this goes beyond providing housing but helping change people’s lives.
He said: “Organisations like Adra don’t just provide housing, they create employment opportunities, improve people’s well-being and complement the broader sustainability objectives of their communities.
“We’re proud to welcome them as a banking partner and look forward to supporting them achieve their ambitions over the next five years with this funding and the positive impact it will have in the local communities.”
Affordable housing is currently a critically important issue in all parts of Wales and beyond, and providing this housing in Wales at levels is a key priority for the Welsh Government.
As outlined in the ‘Update to Future Wales – The National Plan 2040’ report, it is estimated that over the next five years (2019-20 –2023-24), under the central estimate, that on average the estimated annual additional homes are split almost equally between affordable housing (social housing or intermediate rent) and market housing.
This represents an average of approximately 3,500 (48 per cent) affordable homes and 3,900 (52 per cent) market homes per year over the five-year period. It reflects that there is a growing focus on affordable housing but more is needed.
While market housing continues to play a key role in responding to housing demand, to address the identified housing need in Wales and beyond, a shift in the delivery model is required by building affordable homes at scale and pace.