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Our debt position

Investing in the future

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).

Our Moody’s rating is A3 (stable outlook), our S&P rating is A- (stable outlook), and our Fitch rating is A+ (stable outlook).

Our debt position as at 31 March 2023

  • 87%

    of net debt held at fixed rates of interest or hedged against rate increases  

  • 15

    year average debt maturity    

  • £2,514m

    in capital and reserves

Sustainable approach  

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 £950m through three bond issues between January 2020 and September 2021.  
  • Being the first housing association in the UK to be awarded the Certified Sustainable Housing Label.  
  • Having secured £500m in sustainability-linked loan facilities since 2020.  

Financial information about our debt position

Updates and contacts

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Please don’t hesitate to get in touch with us with any investor-related queries you may have.