Housing provider secures £70 million funding deal

A North East housing provider has secured a £70 million funding package to deliver new affordable homes and invest in its existing properties.

Karbon Homes has agreed the financing with NatWest to support its development programme across the North East and Yorkshire.

The package includes a £20 million, ten-year social loan, which will fund the delivery of 161 new homes for social rent, alongside a £50 million revolving credit facility providing additional investment capacity.

Karbon, which owns and manages more than 34,000 homes, will also use the funding to support improvements to the quality and energy efficiency of its existing housing stock.

The organisation is working towards achieving an Energy Performance Certificate (EPC) rating of C or above across all its homes by 2030, as part of a longer-term ambition for its properties to reach net-zero carbon by 2050.

Scott Martin, executive director of resources at Karbon Homes, said: "Despite a continued rise in costs, with increased inflation and higher interest rates, we’ve remained committed to both the delivery of new affordable homes and continued investment in our existing homes.

“This funding provides us with additional long-term certainty and flexibility as we respond to housing need across our communities and work towards ensuring our homes are safe, efficient and well maintained.”

The agreement builds on Karbon’s existing relationship with NatWest, which includes long-term loan funding and revolving credit facilities supporting its development and investment plans.

Alan Newlands, director of social housing at NatWest, added: “Housing providers face the dual challenge of increasing the supply of affordable homes while continuing to invest significantly in existing properties and communities.

“Karbon Homes has a clear long-term strategy focused on delivering high-quality homes, improving energy efficiency and creating sustainable communities across the North East and Yorkshire. 

“This funding package will help support that ambition and the positive impact it delivers for people across the region.”

During 2025/26, Karbon delivered 478 new homes and invested £107.9 million across its housing portfolio.

Its development and improvement programmes also support work across the construction sector, professional services and regional supply chains.

The latest funding comes amid growing demand for affordable housing and increasing investment by providers in existing properties to improve energy performance, meet regulatory requirements and manage rising construction and maintenance costs.

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