Industry News


Large-scale HA mergers are back on the agenda


Te challenging economic climate appears to be sparking a new wave of mergers between housing associations, as social housing landlords look to grow their businesses and make themselves more resilient and efficient. Te cap on this year’s rent rise coupled with


higher than inflation increases in repair and maintenance costs, as well as Government demands for extra work on safety, tackling damp and mould, as well as retrofitting energy efficiency measures are all adding to the financial pressures on social landlords. In response Sovereign and Network Homes


have announced plans to merge to create an 82,000-home business, with a 1st October target date set for its completion. If it goes ahead, it will be one of the largest housing associations in the country. Tey plan to invest £9.2 billion over the next


10 years, building 25,000 new homes (nearly 4,000 more than currently planned) and to establish a new community foundation to invest £100 million in communities over the same timescale.


Also in the south of England, Hampshire based Abri is due to welcome Berkshire based Silva Homes into its group structure, giving it a combined portfolio of 45,000 homes.


An outline business case has been


agreed and the HAs are now in “advanced discussions” about the merger, with a final decision expected later in the year following the completion of consultation with residents and other stakeholders. Gary Orr, group chief executive of


Abri, said: “Abri and Silva offer each other an excellent potential fit. Alongside our geography, we share the same fundamental purpose and very similar objectives. Most importantly, we’re both committed to delivering the best possible services through local teams who are close to their customers and communities.” Aſter a lengthy period spent completing


due diligence checks and getting the approvals required from stakeholders, Sanctuary has recently completed its takeover of Swan to create a large association with 115,000 homes.


Social housing managers must be qualified under new laws to protect residents


A


round 25,000 social housing managers must gain professional qualifications under new rules designed to protect residents,


improve their living conditions and raise standards across the sector. Housing staff will be required to have an


appropriate level housing management qualification regulated by Ofqual equivalent to a Level 4 or 5 Certificate or Diploma in Housing, or a foundation degree from the Chartered Institute of Housing. Te changes are being made through


amendments to the Social Housing (Regulation) Bill, which are intended to drive up standards in the sector and hold landlords to account over the service they provide to their tenants. Tere is no expectation this requirement will be extended to the private rented sector, nor to management agents or consultancies working in the social housing sector. Any social housing landlord who fails to meet the


requirements of the new standards could receive an unlimited fine from the regulator. Te bill also gives the regulator tough new powers – allowing them to enter properties with only 48 hours notice and make emergency repairs with landlords footing the bill. It follows Awaab’s Law, introduced earlier this


year, which will force social landlords to fix damp and mould within strict time limits. Te Government’s press release says the new


requirements will professionalise and drive the culture change needed in the sector, ensuring residents receive a high level of service and are treated with respect at all times. While many managers already provide a high quality professional service, not all do. Tis will ensure that all managers have the skills and qualifications they need. It emphasises the change will bring social housing


more closely into line with other sectors providing front line services, including social work, teaching, and health and care services.


PROFESSIONAL WORKFORCE However, there is no guarantee that professionalising the sector’s workforce in this way will automatically drive up standards and prevent tragedies, or problems such as the poor housing conditions, such as overcrowding or the build up of mould and damp. Secretary of State for Housing Michael Gove


said: “Te Grenfell Tower tragedy and, more recently, the death of Awaab Ishak showed the devastating consequences of residents inexcusably being let down by poor performing landlords who consistently failed to listen to them. We know that many social housing residents are not receiving the


10 | HMMApril/May 2023 | www.housingmmonline.co.uk


service or respect they deserve.” “Te changes we are delivering will make sure


social housing managers across the country have the right skills and experience to deliver an excellent service and drive up standards across the board.” Gavin Smart, chief executive at the Chartered


Institute of Housing, said: “We welcome the Government’s focus on and support for professionalism in housing. We believe housing professionals should do all they can to ensure that tenants and residents have access to good quality, affordable homes; that they are treated with dignity and respect; and that their voices and views are heard and taken account of in decisions that affect them, their homes and the communities they live in and that the vast majority of housing professionals and organisations share this belief.” “We look forward to working with Government


to support organisations and individuals in achieving the qualifications needed under these new requirements.” Tere are lots of details still to be worked out


to clarify timescales for implementation of the training mandate, how the training will be delivered and paid for, as well as the full extent of staff who will need to pass training qualifications. Some commentators are questioning the possible impact on staff recruitment and retention, staff levels, pay rates and overall training programmes. It is unclear how the success of the new


requirements will be measured and whether tenants will have any say in assessing whether individual landlords and their housing staff are delivering improved outcomes. If the new training requirement does not lead to higher standards in the short to medium term it is likely to be labelled an expensive failure.


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