UK Secures £7.5bn Green Energy Investment, Eases Mortgage Rules to Boost Housing Market
Britain announced a £7.5 billion ($10 billion) clean energy investment deal with Japan’s Sumitomo Group on July 9, focusing on offshore wind and hydrogen infrastructure. Investment Minister Poppy Gustafsson said it would "break grid bottlenecks." Sumitomo, a long-term energy investor, has injected over £20 billion in the UK in a decade, marking a key step in the Labour government’s push for private capital in net-zero transitions.
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The Bank of England simultaneously relaxed mortgage curbs: scrapping the 4.5x income cap for individual lenders while keeping the 15% industry limit on high-risk loans. This is expected to unlock 36,000 new loans (vs. 755,000 total in 2023). Governor Andrew Bailey noted only 9.7% of loans exceed the income threshold, with first-time buyers set to benefit most, aligning with Labour’s pledges to boost homeownership via permanent low-deposit schemes and 1.5 million new homes.
The dual moves aim to revitalize two critical sectors: green energy investments address decarbonization targets, while mortgage easing tackles housing affordability. Sumitomo’s commitment signals confidence in the UK’s renewable sector, as the government seeks to balance environmental goals with economic stimulus amid global market uncertainties.
