PWLB briefing
Monthly Activity
PWLB Borrowing Commentary
June 2026
Monthly local authority borrowing activity — finalised cohort
| Metric | June 2026 | vs May 2026 | vs June 2025 |
|---|---|---|---|
| £ Borrowed | £462.9m | ▲ +215% | ▲ +32% |
| # Loans | 37 | ▲ +61% | ▲ +23% |
| WAR % | 4.83% | ▼ −18bp | ▲ +38bp |
| WAL (yrs) | 3.4 | ▲ +29% | ▲ +18% |
Volume & Activity
June sees activity rebound sharply from May's post-FYE lull. £462.9m was raised across 37 loans from 29 borrowers — more than triple May's £146.8m and up 32% on last June. Participation broadened markedly: 29 distinct borrowers versus 20 in May, with the top five accounting for just 47.5% of principal (down from roughly three-quarters in May). This is a wider, more evenly distributed month rather than a handful of large deals carrying the total.
Rate & Tenor
WAR eased to 4.83%, down 18bp on May and back below the 5% threshold breached last month, though still 38bp above June 2025. WAL extended to 3.4 years, up 29% on May and 18% on the year — borrowers stepped back out along the curve after May's short-dated concentration. The rate-versus-WAL slope was mildly positive (+0.09%/yr), and the cohort spanned 4.44% to 6.53%, a range driven by concession tier and tenor rather than intraday rate moves.
WAL Distribution & Debt Profile
Issuance clustered in the 1–3y (45.9%) and 3–5y (36.8%) buckets, with 15.3% in 5–10y and only trace amounts beyond. The profile mix rebalanced toward amortising forms: Maturity bullets fell to 50.6% (from 66% in May), while EIP rose to 27.8% and Annuity to 21.7%. The shift back toward EIP and Annuity, alongside the longer WAL, points to borrowers smoothing cash flows and taking a little more term than they were willing to a month ago.
Concession
Concessionary borrowing was near-total at 99% of principal, but the mix flipped versus May's even split: HRA -60bps led at 57.8% (£267.6m), ahead of Certainty -20bps at 41.2% (£190.6m), with just £4.7m (1%) carrying no concession. On the concession × WAL heatmap, HRA concentrates in the 3–5y row (£120m) and Certainty in the 1–3y row (£120m) — the HRA sweet spot sits one bucket longer than Certainty this month. The heavy HRA weighting reflects housing-revenue borrowers returning in size.
Top Borrowers
| Borrower | £m | WAR | WAL |
|---|---|---|---|
| Hammersmith & Fulham LBC | 50.0 | 4.81% | 4.4 |
| Kensington & Chelsea LBC | 50.0 | 4.81% | 4.4 |
| West Dunbartonshire Council | 45.0 | 4.47% | 1.3 |
| Brighton & Hove Council | 40.0 | 4.80% | 3.5 |
| Suffolk County Council | 35.0 | 4.98% | 1.5 |
| Woking Borough Council | 31.0 | 4.79% | 1.0 |
| Cardiff Council | 30.0 | 5.07% | 4.6 |
| Haringey LBC | 30.0 | 4.79% | 5.3 |
Notable Transactions
Two identical £50m HRA -60bps annuities from Hammersmith & Fulham and Kensington & Chelsea, both priced at 4.81% for a 4.4y WAL and both drawn on 5 June, headed the month — a matched pair rather than a rate move between them. West Dunbartonshire took £45m HRA EIP at 4.47% (1.3y), and Reading set the cohort floor at 4.44% (£25m, HRA -60bps, 1y Maturity). At the far end, a Wonersh parish (Surrey) 25-year loan with no concession priced at 6.53% — the rate ceiling, and a reminder that the headline spread reflects product and tenor, not a single market rate.
Treasurer's Note
June reverses May's lull decisively: volume more than triples, WAR eases back below 5%, and WAL extends by nearly a third as borrowers step out along the curve and lean back into amortising EIP and Annuity structures. The breadth is as notable as the level — 29 borrowers with the top five under half of principal is a healthy, broad-based month, not one propped up by a few large tranches. The tilt to HRA -60bps (58% of principal) shows housing-revenue borrowers back in size, with the discounts again carrying most of the headline-cost relief. Treat the 4.4–6.5% range as concession- and tenor-driven: the twin £50m HRA annuities at 4.81% and the 6.53% no-concession parish loan are pricing different products, not marking a market that moved between trades.
For information only; not financial advice. Always verify rates directly with PWLB before making borrowing decisions.
Source: UK Debt Management Office — dmo.gov.uk/responsibilities/local-authority-lending/current-data