Places for People takes on non-compliant London landlord

The merger comes after Origin Housing was downgraded to non-compliant grades for both governance and financial viability in December, from G1 to G3 and V2 to V3, by the English regulator following an earlier investigation.

In the judgement, the Regulator of Social Housing (RSH) said the association was continuing to pursue a “potential partnership with another registered provider to improve its financial resilience”.

At the time, the RSH said that it lacked assurance that Origin had “an appropriate, robust and prudent business-planning, risk and control framework”. It revealed that Origin had “failed to ensure appropriate monitoring, reporting on and compliance with its funders’ covenants”.

But the regulator said that Origin was working with it to address the issues in the judgement. The RSH also said that the provider was developing an action plan to strengthen board oversight and its internal controls and financial reporting.

Delivering the merger

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

Greg Reed, group chief executive of Places for People, said: “This is such an exciting day and I welcome Origin Housing as part of the Places for People Group in a merger that will benefit everyone.

“This year will mark 100 years since Origin Housing was founded, and together we will build on this great legacy of delivering affordable, quality housing in this part of the country.

“We will be able to use our resources to invest an additional £100m into these 7,800 homes so we can ensure they are improved and maintained to the best standard.

“We will also support a wider range of services in local communities by recruiting, retaining and developing skilled and hardworking staff who know the area. In the longer term we will be looking to create community hubs and will be investing in ways that customers can have a stronger voice on things that matter to them most.”

Carol Carter, chief executive of Origin Housing, said: “I’m delighted that Origin will be joining Places for People. The partnership brings so many benefits for our customers, meaning we will be able to invest in their homes, continue to build new homes and maintain our community focus.

“When we started 100 years ago, our founders created innovative solutions to meet the desperate need for decent, affordable homes in our local communities.

“Over time Origin has adapted and grown, developing successful partnerships that have had a real impact in the areas we work. I see this as the next stage of our evolution, to continue making a difference to people’s lives.”

Origin said there will be no change for its employees with the senior team staying in place and, with the support of Places for People and the Origin board while it remains a subsidiary, it will continue to have oversight of its finances and governance.
 
Origin added that over the course of the year, it will be working with Places for People as the larger landlord further develops its regional service model, and to start to align its ways of working with the wider group.

According to its results for 2022-23, Origin Housing posted a loss of £1.6m. This followed a loss of £21.3m in 2021-22.

Places for People has also been in talks since December 2023 to take on South Devon Rural Housing Association, which owns and manages 357 homes in the South West.

Elsewhere, 39,000-home Stonewater has acquired Bristowe, a community benefit society and housing association that manages 75 properties in the Greater Bristol area.

According to an investor update, because of continued due diligence, the current intention is for Bristowe to join the Stonewater Group via a transfer of engagements into Stonewater on or prior to 30 September 2024.