Karbon agrees £200m in new financing with three lenders

Santander is supplying a loan of £35m over 10 years, which includes refinancing of £11.8m in short-dated loans.

All the loans have variable interest rates. The Santander and Nationwide loans have options to fix interest rates at a later date, Karbon said. 

The association is aiming to develop 2,271 homes over the next five years and plans to spend more than £250m on major capital repairs.

Scott Martin, executive director of resources at Karbon, said: “A chronic shortage of affordable housing in the North East and Yorkshire, paired with a need to ensure existing affordable homes are of the highest quality and our communities are supported, means investment in our sector has never been more important.

“This new liquidity will help ensure we have the financial capacity to deliver our strategy, so we can continue to build strong foundations for life for more people across the North.”

The 34,000-home landlord worked with Savills Financial Consultants and Trowers & Hamlins on the deals.

David Whelan, relationship director – social housing at HSBC UK, said: “HSBC UK are delighted to form a new lending relationship with Karbon Homes and our new facility will help support the development of new homes alongside important investment in existing homes for the benefit of its customers.

“Karbon is a key name we have been tracking for several years, and this facility expands our growing sector presence and support in the North of England.”

Mark Evans, a member of the social housing team at Nationwide, said: “With the close alignment of our mutual social purpose, we are pleased to support Karbon Homes in its delivery of affordable, safe, and sustainable housing to some of the most vulnerable in our society.”

In September 2024, Karbon secured a new £54m loan with NatWest and refinanced £235m in existing debt facilities to improve its existing stock and build more homes.

Last week, the landlord announced a new chair and made nine non-executive appointments to its board and subsidiaries.