Supported housing providers merge to form 2,300-home landlord

Westmoreland was originally found non-compliant for governance and viability in 2018 and later was found to have breached the consumer standards.

As with BeST, Westmoreland’s regulatory notice for consumer standards was lifted by the regulator in 2023 as these issues had been resolved.

However, the provider is still judged to be non-compliant with the other standards according to its most recent judgement from 2019, and a regulatory notice from 2020 has not been removed at the time of writing.

In a release announcing the merger this week, Portus claimed both providers have made significant improvements since the gradings.

It said the pair have “delivered significant governance and financial reform, stabilising operations under new boards and leadership teams, ensuring safe homes and continued support for adults with complex needs across England and Wales”.

Portus said BeST and Westmoreland have “worked closely and openly with the regulator throughout this period of recovery”.

The recovery was overseen by Steve Fensom, chief executive of both providers. He will continue in the top job at Portus.

Mr Fensom said: “The merger is an important step for the supported housing sector, especially given the focus on lease-based models in recent years.

“Rather than being directed, this is a voluntary and forward-looking move by two strengthened boards that have shown resilience and real progress through collaboration.

“The merger isn’t about creating size for its own sake. It’s about being financially strong enough to keep our promises, because without stability, you can’t deliver care or dignity.”

He said the move will allow the provider to invest in stronger services and continue improving on compliance and viability, adding: "Both organisations have fantastic teams who’ve worked extremely hard to turn things around, and we’re very grateful to our customers, partners and the regulator for their support along the way.

“We’re still learning and improving, and by coming together we can build on our progress and set a high standard for lease-based supported housing.”

Jayne Francis-Ward, chair of Portus’ board, said the merger “reflects years of determined improvement and a shared commitment to providing safe, stable homes for people with complex needs”.

She added: “I’m proud of the progress that has brought us here and excited about what we can now achieve for our customers and partners in the years ahead.”

Supported housing is designed so that people can live independently but with a high level of support, and is exempt from rent regulation.

The lease-based model involves a freeholder leasing a property to a private registered provider who then rents the home to an tenant, usually through a nomination arrangement from other services.

Earlier this year, however, the RSH published a report warning that few lease-based providers of supported housing are providing enough support, due to their limited capacity to manage risks, repairs and void periods.