Major provider merges subsidiaries to save cash
Sovereign Housing Group has collapsed its subsidiaries into a single organisation in a cost-cutting move for the 33,000-home landlord.
The newly merged Sovereign Housing Association has a governance structure that includes a single board along with seven resident-led regional panels and a residents’ panel.
The association has seen the incorporation of Sovereign South and West, Sovereign Twynham, Kingfisher HVHS Housing Association and the Vale Housing Association.
Ann Santry, chief executive of Sovereign, said that the structure would give residents ‘greater influence on the services they receive’.
Ms Santry added: ‘Our new rationalised structure, with its single board, will give us a leaner, more efficient decision-making process and allow us to be more flexible and responsive in the challenging climate that is currently facing the housing sector.’
The decision to fold together its subsidiaries is expected to deliver a number of savings. Martin Huckerby, finance director at Sovereign, said that lender consent for the move gave the association ‘a more efficient funding structure for the future’.
He added: ‘Sovereign works in many areas. The move to one legal entity gives us greater balance and the opportunity to fully utilise our financial strength, which puts us in a strong position to achieve our strategic objectives and maximise the number of new homes we provide.’
Sovereign’s merger comes as another landlord – Synergy Housing Group – also gained regulatory approval to amalgamate its subsidiaries.
Official consent for Synergy to collapse its member associations – East Dorset Housing Association, Weymouth and Dorset Housing Limited and Purbeck Housing Trust – is expected to come at a Tenant Services Authority board meeting tomorrow.
The amalgamation will go live next month, pending approval by the Financial Services Authority.