VIVID Lands £125 Million Sustainability Investment to Retrofit and Expand Affordable Housing

Affordable housing provider VIVID has secured a significant £125 million investment through a sustainability-linked facility from NatWest’s Royal Bank of Scotland. This funding will enable the organisation to retrofit more than 400 homes across the South of England, making them more energy-efficient and ultimately lowering energy bills for residents.

VIVID’s group treasurer, Jonathan Roberts, said: “This new facility is an excellent addition to our funding portfolio. In today’s market, long-dated funding can be expensive; this facility bucks that trend.

“The attractive ESG discount rewards VIVID for doing the right thing for our existing customers and building more affordable sustainable homes.”

The fifteen-year term loan is directly tied to VIVID’s broader housing and sustainability ambitions. Although the specific sustainability metrics tied to the agreement remain undisclosed, the overarching goal is clear: scale up the number of homes that meet higher energy efficiency standards.

According to the National Housing Federation, achieving net zero in the housing association sector will require an estimated £36 billion in new investment. VIVID ranks as the sixth largest homebuilder among UK housing associations, having delivered 1,505 new homes throughout the region. Of those, an impressive 92 per cent were classified under affordable tenures.

As of this year, nearly 24,500 of VIVID’s homes have reached at least an EPC band C rating. However, just under 3,500 properties still need upgrades to meet the government’s target of all homes achieving band C by 2030.

This deal is just one part of NatWest Group’s broader £7.5 billion lending commitment to the social housing sector. Earlier this year, the bank partnered with the National Wealth Fund to unlock £500 million in new loans, supporting registered providers in retrofitting homes with improved insulation and on-site renewables.

NatWest Real Estate Finance’s housing finance director, John Horton, said: “NatWest is committed to supporting the UK’s social housing sector and the local customers and communities that they serve. We’ve pledged to provide £7.5bn lending to housing associations before the end of 2026 to help support the development of new homes and improve living conditions.

“VIVID is renowned for its innovative and sustainable practices, development of vitally needed new homes, and its customer-centric approach to service. We’re delighted to support them as they continue working towards their goals of addressing a housing shortage throughout the South of England and enhancing the quality of life for thousands of individuals and families across the region.”

Through this partnership, the fund is guaranteeing £400 million in loans. That means for every retrofit loan issued by NatWest, the National Wealth Fund will back up to 80 per cent of the value. The commitment spans the complete £500 million package.

The National Wealth Fund is also working with Barclays UK Corporate Bank and Lloyds Banking Group on a separate £1 billion funding initiative to further improve energy efficiency across the UK’s social housing stock. Together, these efforts aim to accelerate the shift toward greener, more affordable homes.