Tilia Homes secures sustainability-linked loan

Tilia Homes has secured a ￡125 million sustainability-linked finance deal with HSBC UK and Homes England.

The funding, Tilia said, would aid its ambition to reduce the operational carbon emissions of its homes by more than 70% over the next five years.

The West-Midlands based housebuilder also aims during this period to lower the total tonnage of its construction waste (per 100m2 built) by more than 30% and double the number of its employees on training courses with an external qualification, addressing the skills shortage.

Alongside enabling Tilia’s long-term sustainability targets including committing to reduce its own carbon footprint, the new loan facility will allow the business to expand its landbank to deliver more than 1,250 homes a year.

In April, Tilia announced its “Zero Bills” homes, which feature at its Landimore Park scheme in Northamptonshire in association with Octopus Energy. Zero Bills homes feature green technology to guarantee no energy bills, according to the housebuilder.

On the sustainability-linked finance deal, Philip Chapman, Tilia’s chief operating officer, said: “This is a fantastic achievement and a proud and exciting milestone for Tilia Homes. Land remains the lifeblood of our business and this agreement with HSBC UK and Homes England will allow us to significantly enhance our already active land acquisition programme with greater focus, enabling our teams to continue to secure the right development opportunities in the right locations.

“This deal builds on the continued support of our committed shareholder and offers further stability and financial firepower.

“We strongly believe that sustainability is not just a goal, but a necessity and we are embarking on a journey towards operational net zero, going beyond what is required by regulation.”

Marcus Ralling, Homes England’s chief investment officer, commented: “Our resources are here to help support a diverse market where home builders of all sizes, including SMEs, can deliver for communities. This funding will support Tilia to continue to build quality houses, up to 30% of which are expected to be affordable, with a much-needed focus on sustainability.”