industry news


HA merger mania set to spread across UK


T


he recent spate of housing association mergers in England is spreading to other parts of the UK, with deals being


announced in Northern Ireland and Wales. Over in Ulster, the boards of Helm and Fold


housing associations have approved plans to merge, creating a new organisation with 12,000 homes in management and employing 1,000 staff. The merger is expected to receive formal approval in the next six months and to be completed in 2017.


“Helm and Fold housing associations have approved plans to merge, creating a new organisation with 12,000 homes in management and employing 1,000 staff. The merger is expected to receive formal approval in the next six months”


Liz Cuddy, chair of Helm Housing, said: “In


times of record levels of housing need, a new and financially stronger provider will be better placed to build more homes, right across Northern Ireland.” Diana Fitzsimons, chair of Fold Housing, said:


“Both boards have considered the impact of key challenges such as welfare reform, both on our tenants and our businesses. We feel strongly that this collaboration leaves us much better placed to support our tenants, invest in new systems and technology, and grow and expand our service offering.”


Preferred partner


Meanwhile in Wales, the troubled Tai Cantref has announced its choice of Wales & West as its preferred partner for a merger, despite opposition from its local government authority, Carmarthenshire Council. Tai Cantref, which owns 1,400 homes was


recently investigated by the Government and lost its chief executive. It has chosen to merge with the much larger Cardiff-based Wales & West Housing Association, which has 9,500 homes. Tai Cantref said it received information from interested organisations across Wales and “rigorously evaluated their submissions”. Kevin Taylor, interim chair of Tai Cantref, said:


“Wales & West Housing is our preferred partner, as it has a proven track record, particularly around resident satisfaction and resident engagement. “It is also committed to preserving Cantref’s


ethos of a regional and local focus, and recognises the importance of cultural aspects to our business such as the continued use and support of the Welsh language. Importantly, it is


HA group’s alternative to official merger code includes tenants


A group of housing associations have started work developing an alternative document to the NHF’s controversial Mergers Code. The nine social landlords from across the


country are working with consultants Housing Quality Network, TPAS and Anthony Collins solicitors, on their own guidelines. This will rival the original code, published by the NHF in December last year. Getting input from tenants marks this new


project out as very different from the original code prepared by the National Housing Federation, which many landlords felt was too prescriptive even though it is a voluntary code. Association mergers have been part of the


housing scene for a long time but they have recently been given a strong push by the Chancellor of the Exchequer and in recent months a lot of merger activity has been seen. The Chancellor sees mergers as a way of delivering huge efficiencies, a lower salary bill (with fewer chief executives, finance directors, etc) and more new housing.


Independent


The objective of this new project is to assist associations in developing their own strategic visions for the future shape and functions of their organisations, and the types of partnerships which would help them to deliver greater value for money. The Chair of the group, Soha’s Chief Executive


Richard Peacock, said “Many associations felt uncomfortable with the original code. Our framework will be the subject of full consultation and will include a set of principles, a ‘how to’ guide and examples of approaches that individual associations have developed.” The Chief Executive of TPAS, Jenny Osborne,


commented “TPAS is delighted to be working with a group of associations who are determined to put tenants at the heart of this critical governance issue. In the past tenants have too often been an afterthought when mergers have been considered. TPAS will be helping to shape the new toolkit, and will ensure


www.housingmmonline.co.uk | HMM May 2016 | 11


also a very well-respected organisation that possesses lender and regulatory support.”


Mega deals


Back in England good progress was being reported on two mega-mergers which will see the creation of very large social landlords, with huge annual turnovers and development plans which rival private housebuilders. The leadership team was announced for the


Sovereign and Spectrum landlord, which will have a combined stock of over 56,000, with Ann Santry, named as chief executive, and Richard Hill, as her deputy. Richard Organ, currently chair of Spectrum, will chair the new organisation. Formal approval of the merger is expected in


the next couple of months. Ms Santry said: “The new organisation will be a stronger social business creating economies of scale, which will allow us to deliver on our commitment to provide local services to our residents and build more homes to help tackle the housing crisis.” But this deal will be dwarfed by the size of


another new landlord, which is due to emerge from the proposed merger of L&Q, Hyde and East Thames, which will see a landlord with 135,000 homes and plans to build 100,000 new homes in the following decade, half for sale and half for rent. Senior executives say they are confident of


producing savings of £50m , mainly through their enhanced purchasing power, the re- financing of loans and combining back office functions such as IT. The combined turnover of the new landlord could be in excess of £1bn. All of this activity coincides with rumours


coming out of the regulator that they will streamline the process for mergers to take place, removing some of the red tape and uncertainty that can delay processes from being completed.


that tenants are fully involved in working it up.” The associations involved in the alternative


framework are:


• Bolton At Home • Community Gateway Association • Freebridge Community Housing • Havebury Housing • Progress Housing Group • Red Kite Community Housing • Soha Housing • South Yorkshire Housing Association • Wythenshawe Community Housing Group


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