RBH secures £45m in new funding for further investment in existing homes

RBH added that it has “improved” its interest cover covenant with Santander UK and has “reset covenant arrangements” with its existing lender, Danske Bank, “to create alignment” across the landlord’s loan portfolio.

The Greater Manchester-based housing association, which manages over 12,000 homes, explained that it previously had a carve-out from the Danish bank that is no longer required, as the landlord’s underlying interest cover covenants have been improved.

RBH added that aggregator MORhomes has put in place a standby liquidity agreement to allow the housing association to access the capital markets at “short notice”.

The landlord’s treasury activity involved all its current funders, along with the addition of Cardiff-headquartered Principality as a new funder.

The interest rates for the funding are undisclosed and there are no environmental, social and governance elements in the deals.

RBH said the new funding enables the association to continue investing in its existing properties while “beginning to address key regeneration priorities”. The funding will also underpin regeneration projects that include the delivery of new homes.

According to its financial results in 2024-25, the landlord invested £27m in its existing homes during the year. In 2023, RBH paused its development for up to five years to focus on investment in existing stock. As a result, the association delivered no new homes in 2024-25.

However, the accounts publication also noted that the association’s business plan makes provision for the development of 50 homes per year for 10 years, with work beginning in 2027-28. RBH added that there is “a particular focus on regeneration of existing homes”, including its College Bank site of 1960s towers, which it said is a “priority”.

“This significant financing package will support RBH as it emerges from one of the most complex recoveries in the housing sector and looks to the future, ensuring that customers’ homes remain safe, sustainable and fit for the long-term,” RBH said.

The spotlight was shone on the housing association in November 2022 when the coroner in charge of the inquest into the death of two-year-old Awaab Ishak concluded that the toddler died as a result of prolonged exposure to mould in his family’s RBH-owned flat. Following this, the regulator downgraded the provider to a non-compliant G3 grade for governance.

Since then, RBH implemented a recovery plan and in March last year returned to governance compliance with an upgrade to a G2 rating.

Simon Mellor, executive director of finance and development at RBH, said: “Our funders were a crucial part of our recovery, and it couldn’t have been achieved without their support at the very start. 

“As we emerge from recovery and focus on key regeneration projects as well as investment in our homes, RBH is delighted to put in place a package of funding where all of those funders have been involved, plus the addition of a new funder for the first time in the English sector.”

Amanda Newton, chief executive of the landlord, said that securing this funding package is “a real vote of confidence in RBH and in our future”.

She said: “Building on our return to compliance with the Regulator of Social Housing last year, it means we can look into 2026 with increased optimism as we deliver on our three-year corporate strategy, which has the needs of our customers firmly at its heart.

“We are also incredibly proud to have the support of our existing funders and to welcome Principality into the English social housing sector for the first time. This package gives us the stability and flexibility we need to build a better future together.”

Jan Quarrington, senior portfolio manager at Principality Building Society, said the new partnership marks an “exciting new chapter” for Principality Commercial as it extends its reach and funding into England.

“Supporting housing providers in England allows us to make a positive impact in more communities with affordable housing options and community services, and particularly in the North West where we already have a growing customer presence,” she said.

Robert Simmons, relationship director at Santander Corporate and Commercial Banking, said: “Having worked with RBH since its formation in 2012, we look forward to continuing helping the team make a solid impact within the local community.”

Clarke Willmott conducted the legals for RBH on the deals with Santander, Danske and MORhomes, while Trowers & Hamlins worked as the housing association’s lawyers for the loan with Principality.

Meanwhile, Addleshaw Goddard acted as the lawyers for the two banks and the building society, and Devonshires served for MORhomes.