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Scottish associations’ long-mooted merger sees regulator retreat
Troubled Scottish housing association Arklet has formally merged with its larger compatriot Hanover Scotland, a year-and-a-half after they first entered talks.
The merger means the Scottish Housing Regulator will end its statutory intervention at 384-home Arklet, which started in early 2017.
The regulator appointed a statutory manger and two members to Arklet’s governing body after “serious weaknesses” in its governance and financial management were found.
Hanover, one of Scotland’s largest landlords for older people which manages around 5,000 homes, will take on Arklet’s properties and residents after the deal was sealed last week.
A vote in September by Arklet’s residents resulted in 98% backing the merger.
The tie-up will not result in any redundancies, a spokesperson for Hanover told Inside Housing.
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Helen Murdoch, chief executive of Hanover Scotland, said: “We would like to reassure Arklet residents that there will be very little, immediate change to the service arrangements as Hanover will continue to provide services through the existing staff team based at the Giffnock office.”
Hanover and Arklet first began merger talks in April last year.
Iain Wallace, chair of Arklet, said: “It’s bittersweet that the Arklet brand will disappear, considering our unique history, but our commitment to customers and staff, and care for their welfare, will carry on even stronger with Hanover.”
Ian Brennan, director of regulation at the Scottish Housing Regulator, said: “During our intervention Arklet worked constructively with the statutory manager and appointees to strengthen its board. After carrying out an options appraisal, Arklet decided that the transfer was in the best interests of its tenants.”
He added: “We will continue to monitor Arklet’s integration into Hanover, as Hanover works to deliver the commitments made to Arklet’s former tenants.”
