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Salix Homes strikes funding deal with NatWest for Salford’s sustainable Greenhaus development

18 January, 2022

A major high street lender is backing a highly sustainable, affordable housing development in Salford, which will be one of the first, and largest Passivhaus-certified apartment schemes ever delivered in the UK to date.

Salix Homes has struck a deal with banking partner NatWest, for an undisclosed sum, to help finance the Greenhaus development on Chapel Street.

The Greenhaus development will be the sixth phase of homes on Chapel Street which will bring forward 96 affordable and highly energy-efficient homes to the city.

Marcos Navarro, director of housing finance and sustainability lead at NatWest, said: “The Greenhaus development is an innovative housing project that not only creates new, affordable housing as part of Salford’s Masterplan, but homes that have strong eco-credentials. As a bank we are committed to supporting projects that offer green solutions, and we will continue to work with Salix Homes and other partners on future projects that will positively benefit our communities as well as our planet.”

The flagship apartment block will be built opposite Salford Cathedral and will be constructed to Passivhaus standards, which is a method of low-energy construction to build thermally efficient, ‘green’ homes with minimal energy required to provide heating and hot water.

Greenhaus will be delivered by ECF – a strategic joint venture between leading urban regenerator, Muse Developments, Legal & General and Homes England - as part of the wider, £1bn 50-acre Salford Central masterplan.

Salix Homes is the housing association partner for Greenhaus, which will comprise of one and two-bedroom apartments and will take the overall percentage of affordable homes delivered by ECF to 25% across the entire masterplan area.

Sue Sutton, chief executive at Salix Homes, said: “Salix Homes is committed to building more desperately needed new and affordable homes and this deal with our funders will enable us to bring those ambitions to life at Greenhaus.

“We have a strong track-record in delivering the right type of housing in the right places, and with our foundations firmly rooted in Salford, we’re perfectly placed to deliver this ambitious and sustainable new development in partnership with ECF, which marks the next step in the regeneration of this historic part of the city.

“Greenhaus represents a new era of new-build, affordable and eco-friendly homes that will be fit-for-the-future and contribute towards the battle against climate change. Adopting Passivhaus standards, which is the gold standard for energy efficient buildings, will future-proof the 96-homes at Greenhaus, helping to alleviate fuel poverty and protect residents from rising fuel costs.”

Maggie Grogan, development director at The English Cities Fund (ECF), added: “To be moving forward with the delivery of a landmark scheme in Greenhaus is exciting, as we continue to add to this diverse city through our work in partnership delivering choice, amenities, driving investment and opportunities to benefit the Salford community and we can’t wait to get started. 

“As a national development partnership, we’ve got an opportunity and responsibility to be at the cutting edge of sustainable development and do our bit to tackle the climate crisis. So, to be able to deliver affordable and sustainable homes in partnership with a leading registered provider in the heart of Salford is a proud moment for us all.”

Salix Homes has also secured grants from Homes England and Greater Manchester Combined Authority (GMCA) to help fund the multi-million-pound scheme.

Steve Sheen, senior manager - affordable housing growth (North) at Homes England, said: “This funding through the Affordable Homes Programme shows our commitment to working with partners like Salix Homes to build more homes for people in areas that need them most.

“Being built to Passivhaus standards, this scheme will not only provide quality, new affordable homes for the future, but will also do its bit to meet the Government’s net-zero ambitions.”

Properties that are built to Passivhaus standards enjoy reduced energy consumption of around 90% compared to building regulations, helping residents to reduce their fuel bills and cut their carbon footprints. The homes at Greenhaus will benefit from triple-glazed windows and the latest in insulation technology, using minimal energy for heating and cooling.

The development also includes new public Electric Vehicle parking spaces, a public square and greatly enhanced landscaping in the area.

Construction is expected to start on site in the coming weeks and will take around two years.