Landlords seek partners to gain a foothold in the east England growth area

East of England housing associations are being targeted by larger landlords eager to gain a foothold in the government-defined M11 growth corridor.

Hereward Housing Association in Cambridgeshire is in merger talks with Sanctuary, which is based in Worcester but operates nationwide.

Cambridge-based Granta Housing Society is discussing a merger with London’s Metropolitan Housing Trust.

Another London landlord, Circle 33 Housing Trust, has signed a development agreement with Cambridgeshire’s Luminus Group.

Nene Housing Society in Northamptonshire merged with Accent Group earlier this year (HT 19 March, page 16). Other eastern associations are also believed to be in merger talks.

A number of these big associations, including Circle 33 and Metropolitan, are Housing Corporation development partners so the smaller organisations will benefit from extra grant and opportunities.

The talks between Granta and Metropolitan, and those between Hereward and Sanctuary, are at an early stage: none has yet approached the Housing Corporation for approval.

Hereward’s chief executive, Nick Abbey, said he wanted to consult tenants before deciding.

Hereward would join Sanctuary’s group and manage its 2000 homes in the east of the country. The pair want to get Housing Corporation development partner status.

Granta is likely to join Metropolitan in March. Metropolitan chief executive Tony Shoults said: “It would help to link London and the Midlands and give the group a strong management base in the east so future development there can be very economic and very well managed.”

Circle 33 and Luminus have opted not to merge but plan to make joint bids for grant.

Circle 33 will also make use of Luminus’ maintenance division.

The M11 growth corridor will share a £164m ODPM pot with two other growth areas: Milton Keynes South Midlands and Ashford.

The fourth growth area, the Thames Gateway, has been awarded £441m.

The ODPM wants an extra 200,000 homes built in the growth areas by 2016.

Source

Housing Today