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Housing association secures £75m loan with sector’s first repairs KPI
A large Midlands-based housing association has secured a £75m loan with a key performance indicator (KPI) linked to reducing repairs, which it said is a sector first.
Bromford’s revolving credit facility with HSBC UK is a dual target sustainability-linked loan, aimed at further funding its ongoing investment in existing and new homes.
The repairs-focused KPI covers all categories of repair, including cases of condensation, damp and mould. It challenges Bromford to reduce the number of live repairs from its residents from a 12-month average of 8,000 in March 2025, down to 7,000 by March 2028.
It comes after the government launched a consultation on Awaab’s Law, which will oblige landlords to carry out repairs within legislated timescales.
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Paul Coates, executive director of customer transformation at Bromford, said: “We are acutely aware that there has been increased scrutiny over the performance of housing associations in responding to customers’ repairs requests over the past 12 months, with an increased focus on damp and mould, where the negative impacts on health have resulted in legislation via Awaab’s Law.
“We’ve already been focused on reducing the number of repairs we have open, including investing around £4.5m this year investigating and resolving reports of condensation, damp and mould in our homes and finding long term solutions to these issues.”
But he said the landlord is “determined to do more” and wants to move to a more “proactive approach” to maintaining its homes to reduce the number of active repairs it has.
Imran Mubeen, director of treasury at Bromford, said: “We are delighted to have entered into this new partnership with HSBC UK as they continue to support the social housing sector.
“This deal forms the foundation of a long-term relationship with HSBC UK as we press ahead with our plans to raise over £1bn of new funding by 2031.
“This £75m facility has been delivered through our sustainable finance framework and will allow us to progress our ambitious development plan, invest in our existing homes, and pursue our decarbonisation agenda.”
Over the past 12 months, Bromford secured more than £450m in new funding through its sustainable finance framework.
Last year, it secured a £75m revolving credit facility with an interest rate partly linked to cutting staff sickness levels.
Last month, the association secured two sustainability-linked revolving credit facilities worth £127m with two UK banks.
Also In January, the landlord retained its A2 stable credit rating with Moody’s and is rated A+ stable with S&P.
In response to the A2 rating, Bromford said it would no longer accept a credit rating update from an agency “unless they meet with our customers as part of the annual review process”.
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