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Why should small housing associations merge?
Growing financial, commercial and operational challenges mean more small and mid-sized housing associations are considering mergers, says Kathryn Fox-Rogers, director of housing and customer services at Sanctuary
Kathryn Fox-Rogers is director of housing and customer services at Sanctuary.
Growing financial, commercial and operational challenges mean more small and mid-sized housing associations are considering mergers, says Kathryn Fox-Rogers, director of housing and customer services at Sanctuary #UKhousingIn 2022, as the sector faced increasing financial, commercial and operational challenges, we at Johnnie Johnson Housing (JJH), as a small landlord, were feeling the pressure.
Until this point, our strategy focused on investing in current homes, enhancing fire safety measures, developing new homes and digital inclusion.
However, economic uncertainties around inflation, interest rates and long-term revenue had reduced our capacity to respond to sector changes. Building safety was a growing concern, with increasing requirements for investment in our homes to meet regulatory changes.
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With mounting financial pressure and regulation, we took the decision to pause our development activity and explore partnership opportunities. At the heart of our decision-making was safeguarding our homes and customers, but it did not come without concerns.
This, as for many other providers that have merged or explored opportunities, was new territory for us. What would any partnership mean for the JJH team, customers, our homes, services and the long-term future of the organisation?
Following a detailed analysis of our position, we began to look at partnerships that would enable us to continue to deliver our strategic objectives while supporting and driving value for our customers.
“Following a detailed analysis of our position, we began to look at partnerships that would enable us to continue to deliver our strategic objectives while supporting and driving value for our customers”
Shared purpose, values and trust were key to finding a partner. This is where Sanctuary stood out as the strongest cultural fit for JJH – it shared a similar social purpose, values and customer-first approach to investing in homes and services. Together, we established commitments for customer improvement and investment, which included protecting our colleagues, our ethos and our culture.
With its financial strength, progressive technologies, capacity and a history of successful mergers, we recognised the value Sanctuary would add to JJH. But, as with all partnerships, we also understood the value JJH brought to Sanctuary, through our expertise in housing and providing services for older people. This was an opportunity for JJH to deliver into a bigger organisation where it would have a positive impact in communities nationally.
Following consultations with colleagues and customers, we joined Sanctuary in February 2024 and completed the transfer of engagements in January 2025. By drawing on our combined expertise, we created a new, specialised independent-living team to support customers aged 55 and over, as well as a stronger technology-enabled living service.
JJH leaders moved into senior roles at Sanctuary, with former colleagues now heading housing, independent living and building safety teams. All have been able to combine their skills and experience to strengthen a national organisation with greater opportunities for innovation and development.
“Through the combined expertise of both organisations and, crucially, through involving and listening to JJH customers throughout, we have navigated the process and emerged as a stronger whole”
Legacy and the history of JJH were promises Sanctuary committed to fulfil. This was honoured with a donation of £200,000 to SSAFA, the armed forces charity. Our founder, World War II RAF pilot James Edgar “Johnnie” Johnson, outlined in his legacy that, if we merged, £100,000 should be given to SSAFA. Sanctuary topped up this amount to £200,000 to ensure his legacy will continue to support serving and retired personnel and their families.
As with any merger, it did not come without challenges, and a huge amount of work has taken place. However, through the combined expertise of both organisations and, crucially, through involving and listening to JJH customers throughout, we have navigated the process and emerged as a stronger whole.
Now, as part of a larger organisation, we have the teams and strength to invest in homes and services for our customers and develop new housing which we would not have been able to do alone.
It has also cemented the legacy of our founder, bringing a national housing provider to our homes in Manchester and the North that will deliver for customers now and long into the future.
Kathryn Fox-Rogers, director, housing and customer services, Sanctuary; former managing director, Johnnie Johnson Housing
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