aerial-view-of-suburban-residential-neighborhood
aerial-view-of-suburban-residential-neighborhood

Investing

Advancing UK social housing through decarbonisation and safety upgrades

Macquarie Asset Management is working with a UK social housing provider to adapt existing financing, helping it invest in decarbonisation and safety improvements across its current level of housing stock within its existing portfolio

Swipe for more
SectorInvesting
Sub-sectorSocial housing
LocationUnited Kingdom

Opportunity

Social housing providers in the UK are under increasing pressure to help address the housing crisis by delivering safe, more energy-efficient homes. 

In line with the government’s net zero target by 2050, these providers are responsible for ensuring their properties achieve an Energy Performance Certificate (EPC) rating of 'C' or above by 2030.1

At the same time, regulations governing health and safety standards in housing association properties are becoming increasingly stringent under enhanced consumer regulatory requirements.2

Upgrading homes to meet these standards requires substantial investment, but traditional financing models often fall short, creating barriers to progress.

Approach

Since 2015, Macquarie Asset Management’s (MAM) private credit team has partnered with Cottsway Housing Association (Cottsway), and most recently approved an agreement to provide the association with the financial flexibility to support a large-scale retrofitting housing project.

Cottsway is rolling out initiatives such as upgrades to heating systems, wall insulation, windows and doors. These improvements are designed to meet UK safety and energy efficiency standards, while also enhancing the quality of living environments for tenants.

The flexibility provided by MAM has allowed Cottsway to action its business plan, including £20 million in forecast capital expenditure to support decarbonisation initiatives and fire safety improvements. 

Outcome

Through a tailored financing solution, MAM is supporting Cottsway to upgrade its housing portfolio, ensuring properties meet future energy efficiency and safety standards while delivering improved social housing options in the UK. 

Following the updated agreement, Cottsway will implement their long-term business strategy to upgrade more than 1,100 homes in Oxfordshire currently rated below EPC 'C' to meet or exceed this standard by 2030, with an interim target of bringing 95 per cent of properties up to EPC 'C' or above by the end of 2028.3

Agreed as part of the solution, progress is being tracked and incentivised through updated financing terms linked to energy efficiency improvements, helping to ensure outcomes are both measurable and sustained over time.

1,100+

homes will be upgraded to meet or exceed an EPC rating of 'C' or above by 2030

95 per cent

of properties will be upgraded to standard two years ahead of the UK government’s 2030 EPC regulation

Five

social housing providers financed by MAM’s private credit team4

£1.4 billion

of debt facilities have been provided by MAM to local authorities and housing associations in the UK since 20155

Macquarie Asset Management has provided approximately £1.4 billion of debt facilities to local authorities and housing associations in the UK on behalf of its institutional clients since 2015. Now we are providing flexible financing structures to support work to improve safety and energy efficiency and provide higher-quality living environments for tenants.”

Gareth Edwards
Senior Vice President
Macquarie Asset Management

  1. UK Government, ‘Warm homes and cheaper bills as government accelerates Plan for Change’ 7 February 2025, https://www.gov.uk
  2. UK Government, ‘Regulatory standards for landlords’ 2 April 2024, https://www.gov.uk/
  3. As at 30 June 2025. Based off data provided by Cottsway Housing Association.
  4. As at 30 June 2025.
  5. As at 30 June 2025.

 

Related insights

Explore our insights

No results message:
Displayed when filters returns no results.

We couldn't find any items that match your criteria.

Please reset your filter or adjust your selection.

Service unavailable:
Displayed when filter service cannot be reached.

Sorry, this service is currently unavailable.

Please try again later.