A new model for financing public housing?

The lower the unemployment among residents, the lower the loan costs: UK housing association L&Q spearheads a new way to think about financing.

UK housing association L&Q’s quest to help residents find jobs gained an added incentive with a £100 million real estate loan from BNP Paribas.

Under the terms of the loan, the association will benefit from lower borrowing costs if its L&Q Foundation succeeds in getting at least 600 residents back to work in its first year, and 25 more every subsequent year.


As a charitable organisation, L&Q sees its role as going beyond housing to include social interventions to improve opportunities for its social housing residents.

The sustainability-linked loan supports both L&Q in its charitable mission and BNP Paribas’ corporate social responsibility strategy, which seeks to create a positive impact in society, in line with the UN’s Sustainable Development Goals.