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Month: April 2024

Time for a radical solution to the UK’s housing crisis?

Posted on by Georgie Knight

The UK housing crisis remains a pressing issue, with alarming statistics highlighting the severity of the problem. According to Shelter, over 280,000 people are currently homeless, and Rough Sleeping Statistics reveal a 52% increase in rough sleeping between 2010 and 2020. The shortage of affordable homes is evident, with around 8.4 million people in England alone living in unaffordable, insecure, or overcrowded housing, according to the National Housing Federation. These figures underscore the urgent need for comprehensive measures to tackle the crisis and provide affordable housing for all.

Alongside the shortage of social and affordable housing, the affordability of private housing in the UK has become a significant concern in recent years. Rising house prices have outpaced wage growth (the average house price in England has risen by 56% over the past decade, while wages have only increased by 20%) making it increasingly difficult for many individuals and families to afford homes in the private market.

This affordability challenge is particularly acute in areas with high demand and limited supply, such as London and other major cities. Various factors contribute to the affordability issue, including a shortage of affordable homes, speculative investment, and stagnant wages. As a result, a significant proportion of the population struggles to access suitable and affordable housing, leading to increased pressure on rental markets. For those for whom the dream of home ownership seemed a distant one, rising interest and mortgage rates have simply put this further out of reach. For a “home-owning democracy”, this places a strain on a fundamental strand of the UK’s social contract for an entire generation.

Underlying the affordability issue is a more fundamental one of supply and demand. Since 2000, the population of the UK has experienced significant growth. According to the Office for National Statistics, the estimated population of the UK in mid-2000 was around 59 million people. As of mid-2021, the estimated population had reached approximately 67 million people. Along with further increases since the last census, this represents an increase of well over 9 million people over the course of two decades. Over the same period, Ministry of Housing, Communities and Local Government data suggests that approximately 4m million net new homes were completed across England, Scotland, Wales, and Northern Ireland combined. The National Audit Office (NAO) reported in 2019 that the backlog of new homes needed in England was approximately 4,000,000, with this gap likely widening at current levels of net migration.

Despite the obvious problems, politicians seem to have been unable to sustainably grow the housing supply numbers with planning, the property cycle and opposition to building over swathes of the green belt among the challenges faced.

So rather than tinkering with the existing system (which seems to be the gist of the political class’s thinking on this issue), perhaps it is time for a more radical solution, which could not only tackle, but get ahead of the UK’s housing shortage, while also providing a boost for UK economic growth, investment and productivity and breathing life into a stagnating economy. This would involve a Green New Cities Strategy harnessing a combination of public and private sector capital and the Government’s ability to use its legislative powers to deliver 3-4 new cities, each designed for 1 million people but with the capacity  to grow. A vision for this could involve:


1. Locations targeted for a genuine “levelling up” agenda, bringing jobs, investment and prosperity to currently economically neglected parts of the country. I can think of several potential locations, but will avoid naming names for the purposes of this article!

2. Government to use legislation and public resources to pump-prime through land purchase/assembly, remediation, transport and social infrastructure to ensure long term connectivity and viability

3. Cities to be designed for long-term energy and environmental sustainability, harnessing clean energy and providing an opportunity to deploy clean/environmental technologies, including the new generation of Small Modular Nuclear Reactors, building methods and sustainable communities. For any UK Government wishing to pursue a “green revolution”, what better opportunity to showcase UK leadership in this field?

4. Housing would be a mix of rented, affordable and private, built at high density and to high, tenure blind quality, with the volumes/pipeline involved allowing the coming of age of volumetric modular and modern methods of construction

5. Economic viability – each city would be designed in accordance with national industrial, education & training and business strategies to attract concentrations of industries (and associated supply chains) of the future, with specific clusters and educational and research establishments to support industries such as:


a.       AI/Software

b.       Advanced Manufacturing

c.       Clean Energy/Clean Tech

d.       Life Sciences

e.       Fintech/Crypto/Web3

f.        Creative Industries


6. How would Government leverage the large amounts of domestic and global capital required to deliver on such a vision? Part of the legislative process could involve the creation of special economic zone status over a period of time (say 10-20 years), providing highly attractive tax breaks & reliefs (think corporation tax, CGT, stamp duty, business rates etc) and other investment incentives (such as potential linkage with freeports) for global businesses and entrepreneurs to locate their businesses and make investments in these locations.

7. This could also tie in with the intention behind the Edinburgh Reforms which are designed in part to unlock significant volumes of domestic pension and insurance capital for strategic long-term investment in the UK.

8. Finally, while this would involve considerable front-loaded investment by the UK Government, the medium to long term economic growth and tax revenues associated with these new and economically dynamic cities would ensure longer term viability and return on this investment

While the UK may have lost its confidence to undertake major national infrastructure projects, the country retains an incredible pioneering and entrepreneurial spirit, together with key economic advantages such as leading global universities, the world’s second largest financial centre, the English language and a widely used and respected legal system.

If anything, these advantages are being held back by poor infrastructure, a lack of vision and a linear mindset on the part of our political leaders. What better way of tackling our housing supply crisis, growing our economic prosperity and sending a powerful statement that the UK is open for business than by setting out a bold and ambitious blueprint for the UK’s Green New Cities of the future?

Written by Phil Jenkins, Managing Director and CEO at Centrus Financial Advisors Limited.



Phil Jenkins

Phil is a founding partner of Centrus and draws upon more than 25 years of investment banking and advisory experience across derivatives, commercial banking, structuring and debt capital markets. He has advised a wide range of listed, private and non-profit businesses across the UK on funding strategies, mergers, lender negotiations & capital raisings and played an instrumental role in establishing the widely adopted Sustainability Reporting Standard for Social Housing. Phil previously worked in the Infrastructure division of RBC Capital Markets and the Fixed Income division of Hambros Bank.

Why titanTreasury is the market leading solution for UK Housing Associations

Posted on by Georgie Knight

Market Leading Treasury and Risk Management System

With Centrus’ support and training, a growing number of our affordable housing clients are benefitting from titanTreasury, the leading treasury and risk management system designed to streamline and optimise treasury processes. But what exactly makes titanTreasury stand out?


1. Greater Efficiency

titanTreasury enhances cost efficiency by allowing users to automate and manage a diverse range of financial operations within one platform. Through automation of standard procedures, titanTreasury eliminates the necessity for repetitive manual tasks, freeing up human resources to focus on more complex or strategic activities. 


2. Improved Risk Management 

Unlike other treasury management systems, titanTreasury goes beyond mere task automation and data centralisation; capturing and quantifying risk effectively. Through sensitivity analysis, stress testing, ‘what-if’ scenarios, and activity measurement, titanTreasury equips teams with the tools needed to mitigate risk exposures and reduce volatility in financial statements. By integrating features such as CVA/DVA calculations, titanTreasury ensures a thorough understanding of risk landscapes, enabling informed decision-making and proactive risk management strategies.


3. Enhanced Governance & Reporting

From tracking financial transactions to generating regulatory reports, titanTreasury offers a complete picture of treasury activities. With available reports to help with NROSH regulatory reporting and FFR reports through integration with third-party software, clients can ensure compliance while making informed decisions.



titanTreasury clients include:



titanTreasury Features

One size does not fit all when it comes to treasury management. titanTreasury’s modular-based platform allows users to tailor the system to their specific needs and connect with other tools seamlessly. Whether it’s cash management, operation workflow or risk analysis, the system adapts to suit the requirements of each client.



Centrus partners with 3V Finance to deliver titanTreasury.

With Centrus as the sole provider in the UK, our clients gain access to cutting-edge technology from titanTreasury as well as unparalleled expertise from the UK’s leading treasury advisor to the affordable housing sector.


Ready to Learn More?

Contact Gilles Bonlong, Director at Centrus, for a demo.

Corporate sustainability risks & trends for 2024

Posted on by George Roffey

Corporate sustainability risks & trends for 2024


Rising challenges

Before the Covid Pandemic end to 2019 there was solid progress for Sustainability in the corporate world.   Awareness around climate change, biodiversity loss and the importance of social impact was improving.  The risk and the opportunity of adding sustainability into decision making and performance measurement was knocking more regularly on the board room door and People and Planet were starting to find a more regular place at the same table as profitability.  But then close behind the arrival of COVID a multitude of other inflection points have been triggered, with all sectors of work having to handle unpredictable risks arriving at faster rates. 

  • More Planetary Boundaries breached*.
  • AI generated misinformation and disinformation makes trust worthy data harder to find.
  • Market volatility is commonplace.
  • Political and Geo-political influence.
  • Inflation.
  • Cost of living.
  • War.

The list is long and relentless, with macroeconomic headwinds that historically have come once or twice a generation lining up in their droves.

For corporate sustainability, the challenges rose most fervently in 2023.  There was increasing criticism that sustainable thinking was impeding business performance.  If you were considering environmental or social impact in your decision making the you were denting the profitability.  This has been most formally demonstrated in the United States with legal and incentivised anti-ESG measures in place in more than 18 states.  In times of macro-economic challenge, the need for better rates of return in shorter time periods with quick fix thinking is exacerbated and this exacerbation is directly juxtaposed to the long-term strategic approach that sustainability needs.


Momentum and hope

With any substantial change there are negative reactions to the pro-activism before genuine progress and equality can be made. While the doom and gloom list is long, I believe the sustainability backlash has peaked and is passing.

There are few topics more entangled than Sustainability.  It is across business, science, law, politics, consumerism, popularism, public opinion and uncertainty. It is far more consistent and carrying far more weight as part of decision making at so many more parts of the business value chain.

Data consistency, partnerships, sharing, taxonomies, regulation, legislation, technological and biological innovation are more established and there has been a tectonic shift in the direction of capital investment.  Those who doubt the climate crisis or the importance of social impact are starting to acknowledge the commercial reality. There’s growing evidence that sustainability practices are linked to financial success with studies from the likes of McKinsey & Company showing a 3% to 8% increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for those firms embracing sustainability practices.


Sustainability themes: my current top 5

  1. Scaling renewables – the urgency of addressing climate change and meeting Net-Zero commitments made, plus falling costs and increasing government incentives are driving the rapid expansion of renewable energy capacity.
  2. Regulation and legislation – There are more consistent standards for disclosing sustainability information. It will remain fragmented through 2024 and 2025 but mandatory requirements are starting to bed in with spreading influence.
  3. Data tsunami – Consistent, standardised data is going to take time to evolve but the volume of data available now, assisted by AI evolution is huge. To mitigate risk, adhere to standards and meet commitments that have been made every sector must make sure their data management and related business processes can adapt and react to unpredictable risk.
  4. Technological and biological technology innovation – These are advancing Environmental (e.g. renewable energy, energy efficiency, pollution control, carbon capture, sustainable materials…) Social (e.g. Precision Agriculture, Waste Reduction and Recycling, Healthcare, Social Impact Investment…) and Governance Benefits (e.g. Transparency and Accountability, Risk Management, Sustainable Supply Chains…) and offering a powerful toolkit for companies to improve their sustainability performance.
  5. Consumer behaviour and social expectation – Increasing expectations on products and services to prove awareness and social conscience is playing a more important role in consumer and B2C and B2B decisions with supporting evidence of this showing through in behavioural science.


*Side knowledge bite

First Launched in 2009, the planetary boundaries concept presents a set of nine planetary boundaries within which humanity can continue to develop and thrive for generations to come. Crossing these boundaries increases the risk of generating large-scale abrupt or irreversible environmental changes. Drastic changes will not necessarily happen overnight, but together the boundaries mark a critical threshold for increasing risks to people and the ecosystems we are part of.



For more information on any of the topics discussed, please contact George Roffey, Chief Sustainability Officer at Centrus

UK Affordable Housing Market Update | April 2024

Posted on by Georgie Knight

Market update

  • March CPI of 3.2% was higher than the expected 3.1%, however despite this swap rates did not increase by the end of the day of the announcement.
  • CPI is expected to get close to the 2% target for April driven by the energy price cap reduction, although the increase in national minimum wages could reduce its effect.
  • Inflation has proved to be stickier than markets were expecting until relatively recently; the US Federal Reserve has acknowledged interest rates will stay higher for longer.
  • Given this, markets now only expect one BoE 0.25% rate cut this year in November (at the beginning of 2024 markets were pricing in 6 or 7 rate cuts).
  • Hence, the swap curve is 15 to 20 bps higher than a month ago.
  • House prices indices are now showing month-on-month falls, although a material fall in nominal prices seems unlikely.


Implications for clients

  • The SONIA curve remains flat, now at 4.0% from 7 years through to 30, meaning clients can hedge over a tenor that suits their loan portfolio; this can reduce short-term interest rates and negate the need for risk buffers on hedged funding.
  • Investor demand for HA paper is still strong and spreads remain attractive, which creates opportunity for long term covenant light funding from the DCM market; there has been a notable uptick in activity in this space over the last month.
  • Even though interest rate projections and swap rates have risen over the last month, all in funding costs are still attractive at current levels and delaying fundraising in the hope of market rate falls is a risky strategy (particularly as any increase in margins/spreads could offset any fall in gilt/SONIA rates). Steady hedging over time and maintaining the right hedging ratio to mitigate interest risk is the objective of a hedging strategy, and we think now presents a good opportunity to lock in relatively attractive rates.


Recent client activity

  1. Bond issuances and retained bond sales: Several new bond issues and retained bond sales have recently completed, with HAs seeking to spread maturities through medium and long-term notes with tight pricing achieved.
  2. Strategic asset disposals and acquisition strategies: Centrus is advising HAs on strategic asset disposals and acquisition strategies, highlighting the sophisticated approach some HAs are exploring to unlock capacity.
  3. Corporate finance and treasury strategy advice for mergers: We’re providing comprehensive corporate finance and treasury advice for ongoing mergers in the social housing sector. Our expertise ensures that these mergers are executed smoothly and strategically.
  4. Hedging strategies and interest rate risk management: Centrus continues to assist clients with hedging strategies and interest rate risk management. Our tailored solutions help HAs navigate market uncertainties and protect against potential risks.
  5. Banking transactions: We anticipate announcing successful completion of several banking transactions, including revolving credit facilities (RCF) and term facilities, shortly. These transactions offer competitive pricing and attractive terms, further strengthening our clients’ financial positions.

To learn more about our work in the affordable housing sector, click here.

For more information, please contact Paul Stevens or John Tattersall.

Key insights from World Hydrogen UK

Posted on by Georgie Knight


Last week, the Centrus team attended World Hydrogen UK, where industry leaders convened to explore the latest trends and challenges shaping the hydrogen landscape.

The discussions surrounding the investment and funding dynamics for hydrogen projects in the UK underscore a complex interplay of excitement, caution, and the critical need for supportive frameworks to bridge the gap towards tangible commitments.

The hesitancy to invest heavily in green hydrogen, despite its recognised potential, highlights the indispensable role of robust off-taker agreements, government revenue support mechanisms, and innovative financing strategies in securing project bankability and investor confidence. These elements are not only pivotal for individual project viability but also for the broader sector’s growth, signaling a strategic push towards aligning policy, industry, and financial sectors.


5 key takeaways from World Hydrogen UK:  

  1. Ambitious Targets: The UK government has set an industry-leading target of achieving 10GW of hydrogen capacity by 2030, with a significant portion derived from low-carbon electrolysis. This ambitious goal positions the UK as a global frontrunner in hydrogen innovation, leveraging robust policy frameworks and international collaborations to drive market growth and supply chain development.
  2. Policy Imperatives:  There’s a unanimous consensus on the critical role of government policies in facilitating the formation of stable off-taker agreements. Policy frameworks that encourage long-term contracting and provide mechanisms to mitigate off-take risks are essential for fostering investor confidence and project bankability. Cross-party support and alignment across various government implementation strategies are imperative for policy effectiveness. 
  3. Enhancing Project Bankability: Despite increasing interest in green hydrogen, stakeholders remain cautious about committing to large-scale projects. The key challenge lies in securing revenue support mechanisms and viable off-take contracts to enhance project bankability. Supportive policies and innovative financing mechanisms are crucial for scaling up hydrogen projects and ensuring their commercial success. 
  4. Alignment Challenges: Aligning the duration and terms of project finance with off-take contracts poses a significant challenge. Projects often require long-term financing, yet securing off-take agreements that align with these terms can be complex. This misalignment introduces risks to the project, underscoring the need for innovative solutions to bridge the gap between financing and off-take requirements.
  5. Priority of Uses: While large-scale industrialisation offers economies of scale, the transportation sector presents diverse off-take solutions, catering to both light and heavy-duty vehicle markets. 

As the UK strives to lead in hydrogen innovation and application, a collaborative effort to address investment challenges, align policies, and implement sector-specific strategies is paramount. 

Centrus is proud to have supported a number of hydrogen projects (with clients such as DBE Energy and NGN/CKI) and will continue to support our clients and new investors over the coming years.

For further insights on navigating the evolving hydrogen landscape and leveraging investment opportunities, please reach out to David Craig, Myrto Charamis or Barney Harris.




Myrto Charamis, Director – Centrus

Myrto brings a wealth of experience in London listed investment companies investing in infrastructure assets including renewables, battery storage and energy efficiency. With over 25 years of experience, her career has encompassed roles in leading investment banks in the UK and pivotal corporate finance positions in the US and Europe.


David Craig, Director – Centrus

David has over 20 years of energy, utilities and infrastructure experience sitting across all sides of the transaction table as advisor, lender and principal sponsor. Prior to Centrus, David worked for leading firms both in the UK (pwc and Lloyds Banking Group) and most recently in Sydney for KPMG and Pacific Partnerships, the investment arm of the CIMIC Group, Australia’s largest infrastructure contractor.


Barney Harris, Assistant Director – Centrus

Experienced in business planning and treasury management as well as managing and advising on clients’ derivative portfolios, Barney joined Centrus from the Gresham House Capital Market Team, where he focused on financing solutions across the Real Asset sectors. Prior to this, Barney was at Deloitte for 5 years, working primarily with clients listed on overseas stock exchanges.

Centrus Spotlight with Electric Land

Posted on by Georgie Knight

About Electric Land

Electric Land, established in 2015, has been instrumental in identifying and securing prime land for renewable projects. It’s platform is delivering a growing pipeline of best in class assets by securing predominately freehold land, viable grid and required utility connections and planning permission, and leasing it ‘Ready-to-Build’ to operators. All assets are held long term in Electric Land’s investment portfolio. 

With an impressive portfolio spanning 650 acres across 32 sites in the UK, Electric Land hosts a diverse range of projects including solar, wind, battery storage, electric vehicle charging, and flexible generation infrastructure. Owned by FPC, Electric Land’s commitment to long-term investment in sustainable energy infrastructure is truly commendable.


Centrus Spotlight with Electric Land

In our first Centrus Spotlight episode, Omer Fazal, Managing Director and Head of Real Estate at Centrus, sat down with Stephen Lansman, Chairman at Foundation Property & Capital Group and Electric Land, to delve into the unique characteristics of this specialised asset class and the appeal it holds for institutional real asset investors. For Stephen, these include: 

  • Secure Ground Rent Income: Electric Land’s assets provide a stable and secure income stream, making them highly appealing to institutional investors seeking low-risk opportunities.
  • Scarcity and Importance of Grid-Connected Land: Grid-connected land, essential for housing energy generating and storage infrastructure, is in high demand and difficult to develop, ensuring sustained interest in Electric Land’s sites.
  • Long Leases and Permanent Use: The strong demand for Electric Land’s sites results in long leases, potentially permanent use, and ultra-secure rents, with rental values likely to increase over time.
  • Index-Linked Rents: Rents are often index-linked, providing investors with a hedge against inflation and ensuring consistent returns.
  • Increased Land Value: As tenants invest in infrastructure on Electric Land’s sites, the underlying land’s value significantly and permanently increases, offering additional long-term benefits for investors.

Electric Land is now seeking a cornerstone institutional investor to support the growth of the portfolio and Centrus has been retained as the exclusive financial advisor. For more information, please contact Omer Fazal.