Our debt position

We take a prudent approach to borrowing, to invest in our mission to provide affordable, good quality, sustainable homes for the people who need them most.
 
We maintain a healthy liquidity position, reflecting our current committed funding and our access to the debt capital markets.
 
We had £5.4bn in committed debt facilities as at 31 March 2023 repayable at various dates through to 2051, and our average cost of borrowing was 3.96%.
 
Funding requirements are continuously reviewed, including those in a range of potentially adverse scenarios, which are analysed though stress testing our Long Term Financial Plan.
 
We actively manage risk and seek to optimise cost by: 

• using a diverse range of funding sources, including debt capital markets and bilateral loans with banks and building societies
• maintaining an optimal level of liquidity
• using fixed rate borrowing and interest rate swaps to fix between 70% and 100% of interest payments
• maintaining a large security pool (valued at £7.3bn as at 31 March 2023).

Sustainability is central to our work, and this is increasingly being recognised by investors looking to align to our commitment to meeting ESG targets and generating social value. 

Our track record includes:  

• Being the first housing association in the UK to set up a Sustainable Housing Finance Framework for investors.  
• Pioneering the use of sustainability bonds in the housing sector - raising £1.2bn through four bond issues between January 2020 and May 2024.
• Having secured £500m in sustainability-linked loan facilities since 2020.