Places for People in talks to take on another small landlord

Christine Candlish, chief executive of South Devon Rural, said a tie-up would allow it to maintain its homes to “the very best standard” and build more homes.

The news comes two months after Places for People announced it was in talks to take on troubled 7,000-home London landlord Origin Housing.

In its newsletter, South Devon Rural also said it had drawn up a shortlist of potential partners after deciding on the idea of merger. 

The association said that Places for People “ticked boxes” on a corporate level and that its management team were "people we could happily work with”.

Tenants were told in the newsletter that their services “should improve” as a result of the merger.

In a statement on the South Devon Rural plans, Greg Reed, chief executive of Places for People, said: “The need for affordable housing is greater than ever and we absolutely must protect it in the best way we can so people everywhere in the country have somewhere to call home.”

He added: “This merger would 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.”

South Devon Rural will run a six-week consultation with its tenants on the plans. 

Ms Candlish added: “We understand that change brings questions, and we’re committed to transparent communication with our tenants, who will be able to play a full part in the upcoming consultation process.”

The past couple of years have seen a string a mergers in the sector including Southern Housing and Optivo, plus Sovereign and Network Homes. Earlier this year Sanctuary completed a rescue merger of financially troubled Essex-landlord Swan. 

Some mergers have also been abandoned. Last year a proposed three-way tie-up between BPHA, Flagship Homes and Futures Housing Group was called off because of the “unprecedented” wider economic conditions.