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Cumbrian housing association finalises rescue merger
Troubled Cumbrian landlord Impact Housing has completed its merger with Riverside today, securing 120 jobs.
The completion of the deal draws a line under a period of uncertainty for Impact after it was rated non-compliant for both governance and viability by the Regulator of Social Housing (RSH) in May last year.
The 2,770-home Workington-based association had been found to have insufficient headroom in its business plan by the regulator.
Last May’s regulatory judgement, which was issued following an in-depth assessment, also said the RSH lacked assurance that the board of Impact was managing its affairs with “an appropriate degree of skill, diligence, effectiveness, prudence and foresight”.
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Riverside emerged as a preferred white knight following approaches to a number of associations over a potential partnership.
Riverside owns and manages more than 52,000 homes in England and Scotland, including 6,500 in Cumbria.
The finalisation of the merger came after a vote by Impact’s shareholders in June and a six-week consultation with residents.
The move secured a £25m investment and modernisation programme for Impact, with Riverside supporting the work. Impact’s 120 employees will also be secure “until at least 2020”.
Bryonie Shaw, interim managing director at Impact, said: “Today’s announcement is the result of almost a year of very intensive work to seek a strong partner that will secure Impact’s future and win the support of our tenants, shareholders and local partners in our joint plans. Riverside impressed our board from the outset with its strong commitment to partnership working and values that place customers at the heart of service delivery.
“The association already has a strong local presence, particularly in Carlisle, and the whole partnership has felt like a very natural fit. I’m really thrilled that we are now in a position to make a real difference to our customers’ homes and lives while revitalising our development programme of new affordable homes within the region.”
Carol Matthews, chief executive at Riverside, added: “Welcoming Impact into the Riverside family is a really fitting way to celebrate our 90th year as a provider of social housing. It’s a landmark event that we have all worked hard to bring to fruition and the start of an exciting new chapter for both our organisations.
“Our priority now is to begin delivering the promises in our partnership pledge with a clear focus on strengthening Impact’s financial position and governance arrangements.
“We will maintain local service delivery to customers through the offices and colleagues they know and trust while we begin scoping out with them the ambitious housing improvement programme. Over the next two to three years we will be looking to reignite Impact’s development programme and begin exploring the potential to bring our two organisations’ operations closer together across the region.”
