The group is the first affordable housing association to secure funding of this nature as part of Royal Bank of Scotland’s, which is part of the NatWest Group, new Green Housing Retrofit Loan pilot scheme.

In a milestone for the sector, the deal will allow Together Housing Group to make proven sustainable retrofits such as the installation of ground and air source heat pumps as well as the replacement of cladding, roofs, and windows to its network of socially rented properties across more than 30 local authorities.

Working in partnership with NatWest Group’s ESG Advisory team to confirm the efficiency ratings of the planned upgrades, the investment will allow customers to benefit from a significant reduction in energy bills while lowering THG’s emissions across their property portfolio.

THG was first established in 2011 following the merger of six existing housing associations. The charitable social landlord now provides support services to over 80,000 people and is a major employer within the area with a team of more than 1,500 staff.

Judith Cruickshank, chair of RBS Scotland Board, said: “This funding deal is a landmark for the sector and we’re proud to be the first lender to provide such support to the UK’s social housing industry.

“Together Housing Group provides safe, comfortable – and importantly, affordable – homes to over 80,000 families and individuals across the north of England who are all set to benefit from this new investment.

“Royal Bank is committed to supporting the UK’s social housing sector and we’re privileged to play a role in facilitating Together Housing Group’s continued growth.”

David Horne, director of housing finance at RBS, added: “We have built a longstanding relationship with Together Housing Group that dates back over 20 years and have worked in partnership with the team to support the strategic ambitions of the Together Group across the years.

“With an increased focus on sustainable investment into existing properties to help their tenant base with energy bills and ensure the long term viability of the stock portfolio, this new funding will help with what is a significant retrofit challenge for Together and the wider sector.

“Given the pilot nature of this transaction, it has taken some time to come to fruition and is a huge step forward for both the customer and the sector as a whole. I’m excited to watch the Together team continue to grow and help improve the quality and energy efficiency of their properties across the North of England.”

Mark Dunford, executive director of finance and commercial at Together Housing Group, said: “We’re proud of the progressive steps we’ve taken as an organisation so far towards achieving our ambitious Net Zero priorities and we are thrilled to be the first social housing association receive this valuable funding.

“Our Carbon Reduction strategy puts residents at the forefront as we strive to make essential retrofit adaptations to properties, ensuring they remain energy efficient for the benefit of current and future residents.

“We’re delighted to be working with The Royal Bank of Scotland once again to strengthen our long-standing relationship and continue to make climate change a priority for both organisations.”