LENDING from Triodos Bank UK is supporting new homes and eco-improvements for social housing in the South West.

SHAL, a housing association based in Bridgwater, has increased its Triodos lending facility from £7m to £20m.

This will be used to build additional affordable homes and to make its existing properties more environmentally friendly.

The majority of SHAL’s accommodation is in the Bridgwater area, but it also works across wider Somerset, with housing in Cheddar, Taunton, and Minehead.

Bridgwater Mercury:
Greenfield Road and Helwell Street in Watchet

The association currently manages over 750 properties, including homes for rent and shared ownership.

It is particularly focused on the needs of Somerset’s rural population, who often face the difficult challenge of high house prices and rent, combined with lower wages.

SHAL plans to build over 50 new homes in the next five years, helping to address the growing demand for affordable housing.

Constructed to meet the highest environmental building standards, the new homes will benefit from air source heat pumps and solar panels, as well as having a high level of insulation.

Rated at the highest possible EPC level (A), these energy-efficient homes will be more affordable to run, offering financial savings for residents.

The new homes are a crucial addition to the housing stock. The National Housing Federation reports that there are now 3.8 million people in England in need of social housing.

Bridgwater Mercury:
A photo showing details of one of the SHAL properties

As well as building new homes, SHAL is investing to improve the Energy Performance Ratings (EPCs) of its existing homes. SHAL is taking a ‘fabric first’ approach to improving insulation, before installing solar panels and air source heat pumps which will bring the energy efficiency of existing housing stock into line with that of new homes.

Neil Allan, finance director of SHAL, said: “The new £13m facility from Triodos provides flexible low-cost borrowing. SHAL can now invest £10m in new developments over the next five years and over £2m in improving our existing stock to reach EPC C by 2030.

“Triodos fully understand the financial impact of the investment and provided a supportive covenant suite to enable this to happen.”

Peter Borgers, senior relationship manager at Triodos Bank UK, added: “We are very pleased to help fund SHAL’s development programme which will provide new homes for people in need, and their investment in improving the energy efficiency of existing housing stock.

“As the bank works to realise its 2035 net-zero commitment, this shows the role housing associations can play in decarbonising the housing sector, offering an excellent demonstration of how environmental action and positive impact for society can go hand in hand.”