Greater Manchester has become the first city region in the UK to make green home upgrades accessible through trusted community finance via a network of local credit unions.
Backed by Mayor of Greater Manchester Andy Burnham and the Green Finance Institute, the agreement sees five credit unions sign up to provide unsecured green home loans.
The partnership provides local people across the Greater Manchester area with access to affordable finance to meet the high upfront costs of installing retrofit measures, one of the key barriers to the improving the energy efficiency and warmth of Britain’s notoriously draughty homes, which are some of the oldest and least energy efficient homes in Europe.
Offered by lenders of all sizes, from banks to credit unions, green home loans typically range from £500 to £15,000 and are repaid over shorter terms than mortgage finance, usually around five years. The shorter borrowing period can reduce the total cost of finance, making it well-suited to projects like installing insulation, solar panels, or a heat pump.
Five credit unions, members of the Soundpound Group (a co-operative of 14 credit unions in Greater Manchester) are now offering unsecured green home loans aligned with the Green Home Finance Principles (GHFPs) - a framework that recognises the use of finance to support home electrification and energy efficiency, while promoting transparency and integrity in the market.
With the support of the Green Finance Institute (GFI) and the Soundpound Group, this local alignment will make Greater Manchester the first city region in the UK where residents in nearly every borough can access GHFP-aligned credit union finance.
Andy Burnham, mayor of the Greater Manchester Combined Authority, said: “The Soundpound and their members will be playing an important role in modernising our built environment to support the local economy while cutting energy bills.
“As part of our mission to become carbon neutral by 2038, we're investing in cleaner, warmer and heathier buildings, modernising homes, public spaces, and workplaces while creating thousands of new green jobs across Greater Manchester. By aligning with the Green Home Finance Principles, co-developed by the GFI and LMA, our credit unions are creating a greenprint, leading the way and fulfilling a critical function in making greener homes a reality for more people.”
