Tuesday, 17 January 2017

Associations in talks to create 56,000-home landlord

Two major housing associations in the south of England are in merger talks to become a 56,000-home landlord.

Sovereign and Spectrum Housing Group today said they were considering the move that would create “the largest housing provider in the south and South West”.

Berkshire-based Sovereign owns and manages 38,000 homes. Spectrum Housing Group owns and manages 18,000 homes and manages 45,000 through its maintenance company, Spectrum Property Care.

The statement said the landlords had been exploring the merger since last year, after talks about stock swaps.

It said that the “challenging policy landscape” meant it made sense to look at a merger.

If both boards approve the move, the merger will take place by the end of the year.

Ann Santry, chief executive of Sovereign, said: “By joining together, we’ll be able to take advantage of economies of scale; becoming more efficient and resilient so we can continue to meet our long-term commitments to residents and communities.”

Richard Hill, chief executive of Spectrum Housing Group, said: “This partnership would allow us to use our shared strength and efficiency to meet the range of housing needs in the south and South West and to deliver even more new homes.”

Today, Inside Housing reported that South East landlords Genesis and Thames Valley had both accepted the initial business case for a proposed merger to create a 47,000-home landlord.

 

In numbers

SOVEREIGN

Homes: 38,000

Turnover: £223.5m

Surplus: £45.2m

 

SPECTRUM HOUSING GROUP

Homes: 18,000, plus 45,000 managed through property company, Spectrum Property Care

Turnover: £107.1m

Surplus: £7.1m

 

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