The National Wealth Fund (NWF) has confirmed an initial GBP 150 million (US$ 190 million) financial guarantee to support The Housing Finance Corporation (THFC) to make long-term, unsecured loans to help registered providers (RPs) retrofit their social housing stock in the UK. 

The NWF’s guarantee unlocks long-term unsecured capital for RPs at pricing usually reserved for secured lending. This partnership represents the first occasion that NWF has provided guarantees for this purpose to bond market investors. As a result of the NWF’s support, Rothesay, the UK’s largest specialist pensions insurer, has committed to provide THFC with 100% of the initial GBP 150 million (US$ 190 million) investment. The announcement of this guarantee with THFC confirms the agreement in principle previously outlined in October 2024, building on the funding announced for Barclays UK Corporate Bank and Lloyds Banking Group to support the retrofit of social homes across the UK.

Retrofit loans provided by THFC can be used by social housing providers across the country for the installation of low-carbon heating, insulation, low-carbon lighting, renewable energy, ventilation and heating controls, as well as work on resilience measures and biodiversity.