Places for People gets go-ahead to merge with two smaller landlords

Origin Housing

 

Origin Housing is completing the legal process to become a subsidiary of Places for People and said it will provide an update in the coming months.

 

Origin Housing and Places for People said the merger will mean an additional £100m of investment in customers’ homes over the first 10 years post-merger, as well as improved local services, a “stronger voice” for customers and more.

 

There will also be no changes for current Origin Housing staff, the associations said.

 

The landlords said the merger will be seamless, with tenancies not affected and services – such as repairs, paying rent and service charges or raising issues with the neighbourhood manager – all continuing to be delivered by existing staff from existing offices.

 

The merger comes after Origin Housing was downgraded from G1 to G3 and V2 to V3 by the Regulator of Social Housing (RSH) following an investigation. In the judgement, it said the association continued to pursue a potential partnership with another registered provider to improve its financial resilience.

 

At the time, the English regulator concluded that it lacked assurance that Origin has an appropriate, robust and prudent business planning, risk and control framework.

 

But it said that Origin Housing was working with the regulator to address the issues in the judgement, as well as developing an action plan to strengthen board oversight and its internal controls and financial reporting.

 

The RSH said at the time: “Origin has failed to ensure appropriate monitoring, reporting on and compliance with its funders’ covenants. Inadequate resourcing and data errors in financial reporting to the board were such that Origin has not been managing its affairs with an appropriate degree of skill, diligence, prudence and foresight.”

 

On the merger, Carol Carter, chief executive of Origin Housing, said: “We’re delighted that following consultation with our residents, shareholders have backed the merger with Places for People.

 

“The merger will be hugely beneficial for our residents, staff and the communities we serve.

 

“Crucially, it means more investment in our homes and improved local services, as well as the retention of all of our hardworking staff who know the communities and people in them better than anyone.

 

“For residents, my message to you is that you won’t need to do anything differently – your tenancy, how your rent is paid or what to do when you need help all remains the same.”

 

Greg Reed, chief executive of Places for People, added: “This really is a merger that works for and benefits absolutely everyone. We will be able to use our resources to make an additional £100m available to invest in these homes so we can ensure they are improved and maintained to the best standard.

 

“At the same time, community runs through absolutely everything we do as an organisation and that is why we’re really focused on ensuring local services are not only protected but built on by recruiting, retaining and developing skilled and hardworking staff, and in the longer term we will be looking to create community hubs.

 

“Customers and communities will always come first, and we want to strengthen local accountability by having effective resident involvement in day-to-day services and for their voice to be heard at the highest level.

 

“This year marks Origin Housing’s centenary and on this week of all weeks – the birthday of its founder Father Basil Jellicoe – and we aim to continue to build on this proud history and legacy.”

 

According to its results for 2022-23, Origin Housing posted a loss of £1.6m, following a deficit of £21.3m in the previous year.

South Devon Rural Housing Association

 

Places for People said the merger with SDR will open up “opportunities for greater investment” in affordable homes in South Devon.

 

Places for People’s Mr Reed said: “I’m really pleased that our proposed merger with South Devon Rural has been approved. Affordable housing is in huge demand and the level of investment needed to improve and maintain existing homes is significant across the country.  

 

“This merger will allow us to commit the resources needed to protect and build upon the great work South Devon Rural has done since it was established in 1958.

 

“Affordable housing customers should not be forced out of living in rural areas, particularly when it’s where they have built a life. We’ll work together to create opportunities to deliver more new affordable homes in this part of the country.” 

 

Christine Candlish, chief executive of SDR, said: “I’m delighted that all our work over recent months has paid off and that SDR will soon be joining the Places for People family, in what I’m confident will prove to be a highly beneficial move for our customers and the broader community. 

 

“This merger enables both parties to go forward playing to their strengths – giving SDR the sustainability it needs to deliver its aims of providing more affordable homes in the South West, while enabling our senior partner to widen its scope and influence within our region. 

 

“I’m pleased that the feedback from our recent consultation exercise among SDR residents demonstrated an understanding of the issues and broad support for the move. The future looks a lot brighter from here on in.” 

 

According to its financial results for 2022-23, SDR posted a loss of £399,000, following a pre-tax surplus of £496,000 in the previous year.