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London landlord plans redundancies as it dials down development
A2Dominion is planning to cut the size of its development team by about half, with around 35 redundancies expected to be made as it focuses on investing in its current stock.
The 38,000-home landlord, which is currently non-compliant with the regulator’s governance standards, said a consultation with 70 staff members was underway.
A spokesperson told Inside Housing: “There will be a reduction to around half of that number. However, we are unable to confirm exact detail about the numbers of redundancies as this stage, as it is still in consultation.”
The consultation period is expected to end by “early autumn”, the spokesperson added.
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The cuts are part of a “new strategy” in which the group will move away from its focus on developing new homes, particularly those for private sale, they said.
Some properties are also expected to be sold as part of a stock-rationalisation programme.
A2Dominion has faced a difficult time of late, as it was downgraded to a G3 by the Regulator of Social Housing in January. In its last reported full year, the group fell to a deficit of £12.8m, while an executive shake-up was announced last November in a bid to improve its service to residents.
Like many of its peers, the organisation is cutting back on development amid the myriad financial pressures facing the sector.
A2Dominion currently has a new build programme of 1,645 homes, which is a steep drop from its peak of 7,817 in 2018.
The group said it will also take a “regional approach” to delivering its current pipeline, with dedicated teams for London and the South East.
As part of its new approach, the landlord said it will focus on “regeneration and the redevelopment” of existing homes which “need the greatest amount of investment”.
Despite the changes, Michael Reece, A2Dominion’s chief property officer, said the group remained “committed” to building new affordable homes.
About its focus on existing stock, he added: “Our new strategy will also improve the quality and energy and environmental performance of homes to either improve, regenerate or disinvest in our existing portfolio.”
The spokesperson clarified that disinvestment meant “adjusting our approach to repair and replacement, to reflect the anticipated life of a building or how long we expect a property asset to be in A2Dominion’s ownership. To be clear, we’d always make sure that any occupied homes remain safe.”
Mr Reece said A2Dominion would also look at opportunities for “redeveloping and improving densification and consider stock rationalisation where necessary, to fund new development opportunities within the area”.
A2Dominion has faced multiple severe maladministration findings from the Housing Ombudsman.
Earlier this week, the agency revealed details of a report by the landlord setting out changes it will make, including improving its approach to repairs and strengthening its complaints-handling team.
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