Two housing associations have confirmed they are in talks about joining together to form a new 56,000-home organisation – if the merger goes ahead it will create the largest housing provider in the South and South West.
Sovereign and Spectrum Housing Group have been considering the move since last year following discussions about stock swaps as part of Sovereign’s stock rationalisation plans. During these discussions, it became clear that they shared more than a similar geography and there could be wider benefits to both organisations and their residents in merging. Both housing associations agreed it made even more sense to explore the benefits a merger would bring, given the increasingly challenging policy landscape.
Spectrum Housing Group owns and manages around 18,000 homes, including a large number on the Isle of Wight.
Ann Santry, Sovereign’s Chief Executive said:
“While we’re strong and successful individual organisations, we believe that together we can be even stronger.
“As well as a similar geography, we also share similar values and a strong commitment to helping people achieve their housing aspirations. 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, added:
“We are both committed to building more new homes to help tackle the housing crisis.
Article continues below this advertisement “Our organisations have strong development track records for value for money, quality and innovation. 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.”
Discussions will continue and if both Boards approve, the merger will go ahead by the end of the year.
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