Hyde Housing Association has emerged as the failed bidder for family-run housebuilder Croudace Homes.
Talks between Hyde and the £100m-turnover firm collapsed last week after a year-long process. The Croudace family decided to put the company up for sale when its third generation decided that it did not want to manage it.
According to one source close to the bidding, the talks foundered when the bidders could not agree on how much the collapse in the housing market had hit the company’s value. It is understood that the family wanted upwards of £150m, but the valuation may have fallen by as much as half over the year.
The deal would have been the first purchase of a private housebuilder by a housing association. One industry expert said: “It makes absolute sense for registered social landlords to look at private housebuilders. They would have more control over their own destiny because they wouldn’t have to rely on private companies to build their houses.”
It is understood that Hyde planned to maintain Croudace as a private housebuilder and use its landbank for new developments.
Andy Yallop, chief executive of Croudace, refused to comment on the identity of the bidder. Hyde declined to comment.