SNG (Sovereign Network Group) secures £50M unsecured short-term trade loan facility from Barclays to build new homes

·         SNG receive largest unsecured short-term trade loan facility Barclays UK Corporate Bank has provided to a social housing client to date.

·         The latest £50m trade loan facility will support SNG in its ambitious plan to build 25 thousand new homes over the next ten years.

·         Barclays UK Corporate Bank is simplifying its structure with the Social Housing team now operating as part of the Real Estate business allowing the business to meet the demands of a rapidly changing market.

Barclays UK Corporate Bank has provided its largest unsecured short-term trade loan facility to a housing association to date, to support housing association SNG’s ambitious plans to build 25 thousand new homes over the next ten years.

SNG, which is the second largest developer amongst housing associations in the UK, will look to use the £50 million provided by Barclays to build good, affordable homes for the millions of people impacted by the housing crises.

This deal comes as the new Labour government announced a reintroduction of housing targets, with the aim to build 1.5 million affordable new homes during the next parliament. This was the first major policy action of the new Chancellor of the Exchequer and Deputy Prime Minister, demonstrating their recognition of the crucial importance of housing to economic growth in the UK.

Jason Constable, Head of Real Estate at Barclays UK Corporate Bank said: “This bespoke short-term trade loan facility is another example of our renewed focus on supporting and lending to more businesses across the UK.

“The housing sector is a critical element of the UK economy, and we remain focused on how we can support the delivery of increased levels of new housing stock in the UK as well as supporting the retrofit agenda for our clients’ legacy estates.”

Anup Dholakia​​​​, Director of Treasury at SNG commented: “Delivering the new homes to address the housing crisis is a huge challenge but through innovative funding approaches with the private sector, like this loan, alongside new commitment from government, there is the opportunity for real progress to give people and our economy the best foundations to grow.”

With a rapidly changing social housing market and in order to meet evolving meet client needs, Barclays UK Corporate Bank has recently combined both Social Housing and Real Estate teams. 

By bringing these teams together, there will be a focus on opportunities to increase lending and ensure more tailored support to clients within a rapidly changing social housing market.

Barclays has been a significant supporter of the Social Housing sector for many years, with a 65% market share across the top 200 Housing Associations comprising lending, operational banking and debt capital markets.

-ENDS-

About Barclays

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About SNG

SNG (Sovereign Network Group) is one of the largest housing associations, providing over 84,000 homes in areas facing some of the most acute housing need across London and the South of England, with an ambition to build an additional 2,500 homes a year by 2026. It was formed on 1 October 2023 through the bringing together of Sovereign Housing Association and Network Homes.

SNG is a leading builder of affordable homes, including for social rent, and it has a clear pathway to maximise its social and environmental sustainability through its ambitious Homes and Place Standard alongside its planned £100m Community Foundation.

SNG is a member of the G15 group of London’s largest housing associations. The G15 is the collective voice of some of the leading organisations in the housing sector. Its members house one in ten Londoners and are the largest providers of affordable homes in the capital, building a quarter of all London’s new homes, and owning or managing more than 600,000 homes.