Membership News
Membership News Net zero difficult to reach for period property owners
Allica Bank approved for Recovery Loan Scheme
New research published by Together has revealed that the majority (79%) of British homeowners whose properties were built before 1900 are aware they will need to make changes to dramatically cut their home’s carbon footprint. However, most (57%) don’t know what improvements are needed to increase energy efficiency.
Allica Bank has been accredited for the Recovery Loan Scheme (RLS), becoming the first bank outside of the original CBILS lenders to be approved for the scheme.
The lender highlighted this huge “awareness gap” following government proposals to decarbonise all sectors of the UK economy to meet net zero targets by 2050. In terms of housing, estimates suggest the drive for a net zero future will impact about five million of today’s period homeowners. The research also found that the average period homeowner would only be willing to spend £5,480 in total on their sustainable home improvements, even though the actual cost could be more than three times that amount. Installing a heat pump which can reduce a household’s carbon footprint by 2.5 tonnes of CO2 per year can cost up to £18,000. Commenting, Scott Clay at the NACFB Patron, said: “There is no overnight solution, but there are methods to help turn the tide. Specialist lenders are a huge piece of making this puzzle a lot simpler, offering bespoke financial support to those with more complex properties and financial circumstances.” 12 | NACFB
Under RLS, the NACFB Patron will be offering asset finance to begin with, followed by commercial property finance later this year. It will mean even more businesses can benefit from Allica Bank’s relationship and tech-driven service, enabling the Bank to accept applications from businesses who may have fallen outside its standard lending criteria. Originally due to end in December 2021, the scheme was extended to June this year, providing a boost to the UK’s SME contingent in a time of crucial economic recovery. Conrad Ford, chief product officer, said: “To be the first non-CBILS lender to be approved for the Recovery Loan Scheme is a real boon for Allica. Our mission, since day one, has been to empower established SMEs with expert human support, backed up with a seamless digital experience. These features have never been more important for business owners than during this pandemic, and we’re pleased that established SMEs affected by it will now have even more choice.” Allica focuses on the SME market and gained full banking authorisation from the Prudential Regulatory Authority in September 2019.
