REG - Beyond Housing Ltd - ESG Impact & Allocations Report Update
17/11/2025 17:00
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RNS Number : 8535H Beyond Housing Limited 17 November 2025
Sustainable Bond Allocation
and Impact Report 2023/24
Executive summary
Beyond Housing is a registered Community Benefits Society (CBS) with a group
turnover of £93.7m in 2023/24. We own and manage 15,354 homes across six
local authorities in the north-east, housing over 30,000 customers. We employ
726 people (full time equivalents FTE), and we offer housing for rent and
sale, including shared ownership.
Our five-year strategy to March 2025 is based on four strategic objectives:
· Provide quality services to our customers - increase customer
satisfaction, grow our independent living business, and have 65% of our
customers using digital services.
· Build new homes and keep our existing home in good condition - build
circa 2,750 new homes, increase Tenant Satisfaction measures (TSM) customer
satisfaction with the quality of our homes and repairs satisfaction and
improve the Energy Performance Certificate (EPC) ratings for all our homes to
EPC C or better by 2030.
· Invest in our communities/neighborhoods to create a great place to
live and work - offer the best information and advice to customers, be a
leading training provider and create neighborhoods our customers are proud of.
· A great place to work for our people - achieve Investors in People
(IIP) accreditation, deliver an agile working environment, increase colleague
satisfaction, and improve the health and wellbeing of our staff.
In May 2021 Beyond Housing issued its first sustainable Environmental, Social
& Governance (ESG) bond. The issuance, of £250m notional value, had a
day-1 draw down of £165m, with net proceeds of £161.3m. In November 2022
£40m of the retained bond was issued through a forward purchase agreement
with proceeds in November 2023. The retained portion, totalling £45m, makes
up the balance of the notional value.
The bond, links to Beyond Housings strategic objectives with a key focus and
eligible projects identified in relation to refinancing of existing social and
affordable housing, development of new social and affordable housing and the
renovation of existing homes to improve EPC ratings.
At March 2024, the full balance of the drawn bond has been allocated, with no
plans to draw the retained £45m. As such, this is anticipated to be the
final bond allocation and impact report. As we have a continued commitment
through our Sustainable Bond Framework to adopt the Sustainability Reporting
Standards (SRS), we will continue to report our Environmental, Social and
Governance (ESG) performance through our annual ESG report.
Bond overview
Beyond Housing bond details at 31 March 2024.
Notional Value £250million
Currency Pound Sterling
Maturity 2051 (30 years)
Format Secured, senior, bearer
Repayment Bullet
Moody's Rating A2 stable (October 2024)
Coupon 2.125%
Listing International Securities Market (ICMA) of the London Stock Exchange
The amount equivalent to the net proceeds raised under this bond will be used
to finance and/or refinance in whole or in part new or existing Eligible
Projects, subject to the ICMA principles. The Eligible Projects identified
under our Sustainable Bond Framework are as follows:
Impact ICMA Category7 Description9 Reference financial line item SDG10
alignment
Construction of new Social and Affordable Housing in the United Kingdom No poverty
Capex
A. Social Affordable housing
Sustainable cities and communities
Re-financing of existing Social and Affordable Housing in the United Kingdom
Asset value
Impact ICMA Category6 Description9 Reference financial line item SDG10
alignment
Climate action
Construction of new homes with an EPC (Energy Performance Certificate) Rating
of B or above
Capex
B. Environmental Green buildings
Sustainable cities and communities
Re-financing of existing homes - subject to a minimum EPC rating of B or
above
Asset value
Affordable and
clean energy
Renovation of existing homes that improve unit EPC ratings by two notches
Opex Carpex
Industries, innovation and infrastructure
Allocation summary
The proceeds from the issuances have been allocated in line with our
Sustainable Bond Framework, including refinancing of existing assets as well
as a proportion allocated to new developments and environmental renovation.
Assets refinanced by the proceeds of the Sustainable Bond were identified
according to the criteria in our framework. Refinancing accounted for almost
80% of net-proceeds of the initial issuance.
The table below outlines the areas the allocation of the bond issuance to
date:
Year Bond issuance Refinancing of existing social and affordable housing Net social development expenditure Renovation of new homes that improve EPC ratings by 2 notchs or more Unallocated expenditure
(£m's) (£m's) (£m's) (£m's) (£m's)
2021/22 165.00 (130.00) (17.85) - 17.15
2022/23 40.00 - (25.56) - 31.59
2023/24 - - (40.34) (0.04) (8.79)
205.00 (130.00) (83.75) (0.04) (8.79)
Based on the allocations shown above, all proceeds of the bond issuance to
date have been fully allocated. £45m has been deferred and is due to expire
in May 2026. It is not anticipated that this funding will be drawn and as
such the £8.79m of expenditure that hasn't been allocated will be held to
mitigate the potential removal of any allocated units.
Impact
Our full approach to Environmental, Social and Governance (ESG) can be found in our annual report which can be accessed here
https://beyondhousing.co.uk/environmental-social-and-governance-esg-report-24-25 (https://beyondhousing.co.uk/environmental-social-and-governance-esg-report-24-25)
This report summarises the impacts associated directly with the allocations detailed above as follows:
Rent levels of social and affordable homes
Overall rent levels of our social and affordable housing, including those re-financed and developed during the period is as follows at March 2024.
Hambleton Scarborough Teesside
Social general needs Beyond Housing LHA Beyond Housing LHA Beyond Housing LHA
1 Bed - - 82.12 86.3 88.97 86.3
2 Bed 109.94 115.07 95.57 111.62 98.57 99.65
3 bed 120.92 136.93 103.06 128.88 108.87 115
4 Bed - - 111.54 149.59 121.19 155.34
Darlington Hambleton Scarborough Hull & East Riding Teesside
Affordable general needs Beyond Housing LHA Beyond Housing LHA Beyond Housing LHA Beyond Housing LHA Beyond Housing LHA
1 Bed 103.34 76.15 - - 94.32 86.3 - - 93.57 86.3
2 Bed 109.5 92.05 113.48 115.07 112.24 111.62 116.84 92.05 116.53 99.65
3 bed 116.99 113.92 122.79 136.93 128.87 128.88 121.41 109.32 123.94 115
4 Bed 130.34 151.89 - - 144.4 149.59 165.42 138.08 134.96 155.34
New Development
Key developments to highlight are as follows:
Loftus Development - during the year, Beyond Housing delivered the final
£18.7m phase of our £42m development in Loftus. The development includes 116
homes for affordable rent and 12 homes for rent to buy.
Homelessness - Beyond Housing formed a partnership with Scarborough Borough
Council, North Yorkshire County Council , to tackle homelessness in
Scarborough. The scheme has a total cost of £599,149, with funding of
£345,000 secured from Homes England. Two groups of apartments in Scarborough,
were completed to support homeless people in the area. Reducing Exclusion for
Adults with Complex Housing Needs (REACH) is a three-year project supporting
homeless people into housing and providing them with the tools they need to
establish independent living. The Scarborough-based project aims to identify
the most vulnerable people whose complex life circumstances and needs are
preventing them from finding a home on the same-day basis as everyone else,
often because they need extra support. Alongside housing, the project team
provides support and guidance about alcohol or substance misuse, mental health
needs, and the reduction of anti-social behaviour and criminal activity - all
of which can be barriers to sustaining a tenancy and can limit employment
prospects.
Middlesborough - Development of 30 new two-bedroom apartments at the Boho
Village development in Middlehaven. The apartments were delivered in
partnership with Middlesbrough Development Company Ltd (MDC) and contractor,
Equans. The purchase was supported by Homes England with grant funding
totaling £1.2m. All the apartments are equipped with air source heat pumps,
efficiently reducing carbon emissions by extracting renewable heat from the
environment to generate hot water and heating in the home. This project
supports Middlesbrough Borough Council's commitment to restoring and
regenerating Middlehaven as the centre of thriving businesses and homes that
it once was. With the multi-million-pound investment, the council's ambitious
Middlehaven Development Framework has included bold ideas providing education,
housing, retail and leisure facilities.
EPC Impact
Distribution of EPC rating of existing homes
EPC Rating
Year A B C D E (or below) Total
2023/24 0.4% 5.3% 80.7% 12.9% 0.7% 100.0%
2022/23 0.4% 5.0% 80.7% 12.9% 1.0% 100.0%
2021/22 0.0% 3.2% 80.7% 14.4% 1.7% 100.0%
86% of our housing stock has achieved an energy efficiency rating of EPC C or above, an increase of 226 properties during 2023/24. The average SAP rating is 72.6 and we have targets to meet the Government's target of 100% EPC C or above by 2030. We install only energy 'A' rated boilers, and our annual capital works program includes insulation, double glazing, kitchens and bathrooms, ensuring c100% of our homes meet decency standards every year.
In 2023 Beyond Housing secured a further £1.12m of grant from the Social
Housing Decarbonisation Fund, through the Tees Valley Combined Authority
consortium. The grant, supported by additional match funding of £2.5m from
Beyond Housing will improve the EPC ratings and carbon emissions of 97 homes
across our communities in the Redcar and Scarborough areas. The
proposed projects include energy efficiency measures installed at 65 dispersed
properties throughout the region, including insulation, upgraded heating
controls, solar PV and Air Source Heat Pumps to some properties. The second
project is the installation of a shared ground loop system, solar PV, external
wall insulation and energy efficient windows to a block of 32 flats in
Hunmanby.
During the period, there were 3 properties that had increased EPC ratings of 2
notches or more, with the net expenditure associated with these being
allocated against the bond.
All properties built during the allocation period have achieved an EPC rating of B.
Accountant's Report (RSM)
This report has been submitted to RSM UK Audit LLP (the external auditors of
Beyond Housing) who have performed an agreed-upon procedures engagement in
accordance with the International Standard on Related Services ISRS 4400
(Revised) - Agreed-Upon Procedures Engagements. The findings of this report
will be provided to the Board and M&G Trustee Company Limited.
Important Information
This report:
· Has been prepared by Beyond Housing for information purposes only
· It does not form a legal investment, tax, accounting of other
financial advice
· Is intended to provide non-exhaustive, indicative and general
information it is not intended to be full comprehensive
· Should be read in conjunction with the Annual Report and Accounts
2023/24.
This report has been prepared based on reviews and analysis of our loan and
data statistics. The report contains backward and forward-looking information.
Information has been provided by third parties and the borrower. The
information is relevant only on the respective dates.
Beyond Housing makes no representation, warranty, assurance of any kind,
expressed or implied, or takes no responsibility or liability as to the
fairness, accuracy, reliability, reasonableness, correctness or completeness
of any opinions or conclusions in the report.
The report offers no security or investment advice.
Beyond Housing is not liable for any loss, damage, liability or expense
incurred or suffered that is claimed to have resulted from the use of this
report by the recipients, including without limitation and direct, indirect,
special or consequential damages.
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