L&Q completes major stock transfer for second time in months in 800-home deal with Southern

In February this year, L&Q told Social Housing it would be embarking on a new locality-focused plan, following high-profile media scrutiny over some of its tenants’ housing conditions.

The 107,000-home landlord said it would invest £1.5m in additional frontline staffing resources and hire an additional 60 frontline staff to manage patches of properties with no more than 550 homes.

Commenting on the stock deal with Southern, John Lumley, strategic sales director at L&Q, said: “We’re delighted to have completed this transfer with Southern Housing Group, following on from similar successful agreements with Phoenix Community Housing and Settle last year.

“This transfer will ensure residents receive a great service from a provider with a strong presence in Surrey and Sussex, whilst consolidating our stock footprint as we continue to invest in our existing homes and services and pursue strategic growth across the country.”

For Southern the stock transfer adds to its 30,000-home portfolio in London and the South of England – with 672 homes in Horsham and 131 in Elmbridge.

The transfer, completed on 21 March 2022, also increases Southern Housing Group’s stock of sheltered homes, which provide supported living for older people, adding 86 units in Horsham.

Alan Townshend, chief executive of Southern Housing, said: “Yesterday’s announcement marks a major step in our strategic plan. The acquisition of 803 homes from L&Q underlines our commitment to the communities of Elmbridge and Horsham, where we already have a significant role as a housing provider and development partner.

“We are committed to helping to improve the availability of affordable homes for local people while ensuring excellent service for our residents and value for money for the taxpayer.”

Southern Housing said that negotiations with L&Q began in 2021 following a consultation with residents, in which a majority of responses supported the transfer.

Arthur Merchant, chair of Southern Housing said: “We are delighted to have completed our largest stock acquisition to date.

“Horsham and Elmbridge are important locations for the group. We look forward to working closely with residents, local authorities and other stakeholders as we achieve our ambition of creating better housing options for local people.”

The stock acquisition adds to the over 400 homes Southern Housing Group already manages in Elmbridge and the more than 700 homes in Horsham.

Southern was supported on the deal by consultancy Faithorn Farrell Timms and law firm Devonshires.