London housing associations begin merger talks

It is hoped that the tie-up will leave SBHG better placed to deliver more reliable and consistent investment in its existing homes at a greater pace, improve services and develop more affordable homes for the residents of west London.

Martin Hurst, chair at SBHG, said: “SBHG remains a viable independent business and following our downgrade by the Regulator of Social Housing last year we have made great progress with our governance recently. 

“We want to build on our progress to do more for our residents by investing in their homes [and] communities and building much-needed affordable housing, which will remain challenging if we stay independent.”

SBHG was downgraded to a G3/V2 grading, which means it is non-compliant on governance issues. 

In making its decision last year, the English regulator said it had identified issues that allowed the association to come “within weeks of a potential loan covenant breach”.

Catriona Simons, group chief executive of The Guinness Partnership, said that “bringing SBHG into the Guinness family will increase the impact we both have in west London and deliver more for SBHG and Guinness residents”.

In a release, both landlords said they will work closely to keep residents, employees and stakeholders informed over the coming months, with SBHG shareholders being asked to formally approve the partnership later in 2023.