Lender’s largest ever corporate loan intended to give G15 landlord funding flexibility after announcing sustainability strategy
Peabody has increased its lending facility with Nationwide by 25% as it seeks flexibility to increase investment in improving homes.
The £1bn-turnover housing association said extending the loan facility by £100m to £500m “will support Peabody’s ongoing investment in residents’ homes, as well as the group’s wider work providing support and services in local communities.” The loan facility is Nationwide’s largest ever corporate loan.
Phil Day, chief financial officer at Peabody said: “It [the loan] will help strengthen our financial resilience and support our long-term commitment to investing in the quality, safety and sustainability of residents’ homes. It gives us greater flexibility to respond to future needs while keeping our focus firmly on delivering better homes and services for residents.”
News of the loan emerged shortly after Peabody published its five-year sustainability strategy and climate transition plan.
The plan has three strands: accelerating carbon reduction, including focusing on improving existing homes, building high-quality new homes, and reducing emissions across operations and supply chains; climate resilience, focusing on protecting homes from climate risks; and governance and metrics, designed to ensures strong oversight, clear accountability and reliable data so progress is measurable.
Every Peabody directorate will have its own detailed action plan, which Peabody said will ensure sustainability is embedded” into decisions about investment, services, procurement and the management of homes and neighbourhoods.”
The group is also planting 4,000 trees, one for every staff member.
In 2025/26, Peabody spent £428m on improvements to existing homes, down slightly on the £431m spent the previous year, while also investing £415m in developing new homes (up from £336m year-on-year).
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