Partnership must be at the heart of sustainable funding

It’s time to reframe the conversation. Sustainability and social housing go hand in hand and shouldn’t be separated. The intersection between the two presents a rare opportunity for both the public and private sectors to unite in building a greener future.

To move the dial, we need to start viewing housing as national infrastructure, essential not only for social stability but also for achieving our climate targets.

Innovative funding solutions

The question on everybody’s lips, however, is this: how do we pay for it?

We believe the answer lies in partnership. We set this out in our 2021 report, Retrofitting social housing: a funding roadmap, which was produced in partnership with Buro Happold.

The report pointed to a new kind of mixed funding model that embraces a combination of government grant funding, sustainable finance and guaranteed debt, alongside energy production and storage techniques.

During our investor roadshow this summer, I met with dozens of potential investors and other stakeholders across the public and private sectors. It was immediately clear to me that there is strong appetite to support social housing and its journey to decarbonisation. This is an important start.

What we now require is a more supportive policy framework, enhanced de-risking mechanisms, and better financial incentives to encourage investment in sustainable housing projects.

As a sector, we also need to present more investable propositions – both to the government and the investment industry.

The social housing sector shouldn’t be seen as a guinea pig when it comes to new forms of green technology. We are, after all, talking about people’s homes and we must be mindful of that fact.

Public-private partnerships, where housing associations and private investors collaborate on green projects, have the potential to be the bedrock of a successful strategy. This is something THFC is committed to exploring as we enter the next phase of our corporate strategy, focused on new partnerships and more innovative financial solutions.

Delivering better, greener outcomes

We’re already seeing fantastic work being done across the sector to create more sustainable communities.

The regeneration of the Stockwell Park development in Brixton is one of many examples highlighting how sustainability can be central to housing developments.

Managed by SNG, this project integrated various green initiatives, including rooftop solar panels that power 270 homes, electric vehicle chargers and extensive nature-based solutions to promote biodiversity. 

The regeneration also features energy-efficient infrastructure, including a state-of-the-art energy centre, modern recycling systems, and plans for sustainable transport solutions, such as bike stores and a Zipcar rental system.

By integrating environmental considerations into urban regeneration projects, Stockwell Park is not just improving local livelihoods but also setting a standard for sustainable, community-centered development.

Stockwell Park showcases the type of housing and built environment transformation the UK needs on a broader scale to meet its climate goals.

Banding together for a common cause

Ultimately, sustainable solutions are in the interests of the government and its delivery partners – whether they are housing associations, councils, responsible investors or sustainable developers.

We need a concerted effort from both the public and private sectors, with the private sector investing in green projects, and the government simultaneously putting the incentives and policy frameworks in place that enables them to do so.

It’s time for us to show that housing holds the key to net zero.

Priya Nair, chief executive, The Housing Finance Corporation