Three firms including Wates will look after nearly 70,000 homes

Engie, Wates and United Living have all won spots on Clarion’s £1.2bn framework which will run for 20 years.

A spokesperson for the housing association said the £1.8bn figure in the initial advert was an “estimated total value” based on the budgetary costs of £1.2 bn plus possible fluctuations over a 20 year contract.

She said: “We wanted to provide the market with an understanding of what the contract value could potentially be.

“In the award notice, the figure was £1.2 bn, based on our budgetary costs only, excluding potential fluctuations. To confirm, the budget costs have not altered and the value of the contracts have not reduced.”

The three firms have been appointed to provide planned investment and regeneration major works to the properties they own and manage across separate geographical areas.

Engie secured lot one, which covers the east region, including East Anglia, as well as the Birmingham and Coventry local authority areas.

The lot, which is worth £364m, covers 17,800 properties, of which there are 3,152 bungalows, 8,786 houses and 5,865 flats.

Wates was picked for lot two, which is worth £410m, and is for work in the north of London, including properties in 14 different boroughs.

The contractor will be responsible for work relating to nearly 20,000 properties of which there are 4,090 houses and 15,852 flats.

United’s lot is for the south of London and the South and is worth £400m.

This lot covers Kent, Southern Home Counties, Dorset, and local authority areas of Bromley, Croydon, Sutton, Lewisham, Southwark, Lambeth, Mitcham, Maldon, Wandsworth and Kingston upon Thames.

It is made up of around 29,476 properties of which there are 710 bungalows, 11,690 houses and 17,076 flats.

Within this region Clarion also has 8,718 properties in Merton, which include 2,473 houses and 6,245 flats