South-east landlords join forces to bulk-buy goods

Amicus Group and MHS Homes are leading the drive for a joint company to help them hit government efficiency targets.

Thirty-seven housing associations met in Kent two weeks ago and have since been formally invited to join the consortium, which would procure works and materials for its members.

Those backing the consortium say the new body will make savings on component and installation contracts, and allow registered social landlords to share good ideas.

Ashley Hook, housing director of MHS Homes, said the procurement consortium would initially use its collective purchasing power to pay for decent homes standard work, including the installation of new kitchens and bathrooms.

He said no one has yet calculated how much the consortium would spend or save.

“One of the first jobs we will be doing is an analysis of how much we are spending and on what, and that will inform what the priorities will be for the consortium,” he said.

He said that since formal invitations had been sent out, seven housing associations had expressed an interest in joining.

“The level of interest we have had informally so far has been quite impressive,” he added. “We will be submitting a bid for ODPM seed-corn funds in August.”

The ODPM is to fund 40 bulk-buying groups to save up to £400m, following the success of the Fusion 21 partnership of Merseyside social landlords.