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Housing associations in merger talks to create 43,000-home landlord
PA Housing and Accent Group have begun discussions over a potential merger that would create a 43,000-home landlord.
In a stock market update this morning, PA and Accent said they are “exploring the merits of a potential partnership”.
PA currently has 23,200 homes in London, Surrey and the Midlands, while Accent has 20,700 homes in the North, Midlands and South East.
Both housing associations have the highest possible G1/V1 grading for governance and financial viability from the Regulator of Social Housing.
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Today’s update said: “A final decision on the proposed partnership will be made by both boards in the coming months.
“While discussions continue, both organisations will focus on delivering existing commitments to customers on investment, service improvements and new homes.”
The merger talks follow a major announcement from Southern Housing and Sanctuary last month that the two were in discussions over a potential merger to create UK’s largest housing association with a combined stock of 130,000 homes.
Last week, Accent completed a 284-home stock transfer to Sanctuary Supported Living, with executives conceding that it had become “difficult for us to provide that quality of service our residents deserve”.
PA’s half-year results from November last year showed the landlord had an operating surplus of £23.4m from a turnover of £75.5m. Accent’s results from July 2020 show an operating margin of 23.9% with a turnover of £100.5m.
PA was formed in 2017 following a merger between Paragon Community Housing and Asra Housing Group.
Both housing associations have sought to bolster liquidity in recent years, with Accent issuing a £350m bond in July 2019 and PA utilising the Bank of England’s COVID Corporate Financing Facility to receive £75m.
Recent results from PA and Accent revealed the associations have liquidity of £176m and £105m respectively.
