River Clyde Homes secures £117m of funding to develop affordable housing

RIVER Clyde Homes has secured a £117 million loan facility from the Royal Bank of Scotland to help address the rising demand for sustainable, energy efficient homes in the west of Scotland.

The charity said that it will use the funding to raise living standards in the affordable housing market, with a focus on the sustainability and energy efficiency of the existing properties.

It added that the loan facility means that it will be able to pursue its ‘key’ investment priorities for tenants, centred on increasing thermal comfort; reducing energy demand and bills; improving air quality; lowering carbon emissions; and creating future-proofed homes.

Royal Bank of Scotland’s funding package is made up of £20 million of new funding along with a £97.5 million refinancing restructure, providing River Clyde Homes with the ‘confidence and necessary’ flexibility to pursue business objectives that support local communities and tenants.  

Formed in 2007, the organisation manages over 6,000 homes and provides factoring services to a further 2,200 customers in the Inverclyde area. It employs around 300 people.

John Wright, executive group services director at River Clyde Homes, said, We are delighted to have continued our long-standing relationship with Royal Bank of Scotland as a key funding partner. Securing this funding is a major milestone for River Clyde Homes and the flexibility within this funding package will help us to deliver our future ambitions.

“These include enabling significant investment to modernise existing homes for customers and helping River Clyde Homes on its journey towards net zero. This investment will not only assist the organisation to lower its carbon footprint but will also help to reduce running costs for customers in the face of spiralling energy prices.” 

David Horne, relationship manager at Royal Bank of Scotland, added, “This funding builds on a long-term relationship with River Clyde Homes, who we have supported since transfer in 2007. It will enable the continued support for the development and provision of much needed good quality affordable housing in Inverclyde. 

“The funding structure is designed to support the Association as they adapt to short-term challenges in the market such as rising interest rates and inflation, whilst also providing them with long-term stability and confidence to deliver vital infrastructure projects that raise living standards and build closer communities.

“At Royal Bank, we remain committed to tackling the challenges facing the UK’s housing sector while also improving sustainability within the industry.”