Funding will support the delivery of 161 new social-rent homes and investment in existing properties, helping meet growing demand for affordable housing across the region.
Karbon Homes has secured a £70 million funding package from NatWest to support the delivery of new affordable housing and continued investment in homes and communities across the North East of England and Yorkshire.
The package comprises a £20 million, ten-year Social Loan, which will fund the delivery of 161 new homes for social rent, alongside an additional £50 million revolving credit facility (RCF). The funding will strengthen Karbon's long-term investment capacity as it continues to deliver new homes and improve the quality and energy efficiency of its existing housing stock.
Completed on for the start of the 26/27 financial year, the agreement comes at a time when housing providers are managing increasing demand for affordable homes while investing heavily in existing properties to improve energy performance, meeting evolving regulatory requirements and responding to rising construction and maintenance costs.
Karbon Homes owns and manages over 34,000 homes across the North East and Yorkshire and provides housing through a range of tenures including social rent, affordable rent, market rent and affordable home ownership schemes.
The funding will support Karbon's long-term development and investment programme, enabling the organisation to continue building much-needed affordable housing while improving existing homes and helping create strong, sustainable communities. It also supports Karbon's drive for all homes to achieve an Energy Performance Certificate (EPC) rating of C or above by 2030 and for its homes to reach net-zero carbon by 2050.
During 2025/26, Karbon delivered 478 new homes and invested £107.9 million across its housing portfolio, underlining the scale of its commitment to housing delivery and community investment across the region.
Scott Martin, Executive Director of Resources at Karbon Homes, said: "Despite a continued rise in costs, with increased inflation and higher interest rates, we've remained committed to both the delivery of new affordable homes and continued investment in our existing homes.
“This funding provides us with additional long-term certainty and flexibility as we respond to housing need across our communities and work towards ensuring our homes are safe, efficient and well maintained.”
Karbon's development and improvement programmes also support economic activity across the construction sector, professional services and regional supply chains, helping to generate wider benefits for local communities.
Alan Newlands, Director, Social Housing at NatWest, said: "Housing providers face the dual challenge of increasing the supply of affordable homes while continuing to invest significantly in existing properties and communities.
"Karbon Homes has a clear long-term strategy focused on delivering high-quality homes, improving energy efficiency and creating sustainable communities across the North East and Yorkshire. This funding package will help support that ambition and the positive impact it delivers for people across the region."
NatWest's relationship with Karbon includes the £20 million Social Loan alongside existing long-term loan funding and revolving credit facilities that provide operational liquidity and flexibility to support the organisation's development and investment plans.
As Karbon continues to deliver new affordable homes and invest in existing neighbourhoods, the funding will help provide the strong foundations needed to support sustainable communities, improve housing quality and respond to long-term housing demand across the North East of England and Yorkshire.
Image of Karbon homes (JPG, 2 MB)
Notes to editors
About Karbon Homes
Karbon Homes builds, manages and looks after affordable homes for people across the North. The aim is to give all customers the strong foundations they need to get on with life. Since its formation in 2017, Karbon has focused on delivering our three strategic aims - to provide as many good quality homes as possible, to deliver excellent service to customers, and to shape strong, sustainable places for its communities.
Our footprint covers the North East of England and Yorkshire, with over 34,000 homes across diverse communities, all facing different opportunities and challenges.
Some customers just need an affordable home, or a way onto the property ladder. Others might need more – financial advice, community services, sheltered accommodation or training that can lead to a new job. Whatever people need to feel more secure, confident and happy with their lives, the Karbon team work their heart out to provide it.
Karbon believes that by combining a sound business head with a strong social heart and staying true to its values, the organisation can build strong foundations for even more people.
