London landlords end merger talks after 10 months

In March 2023, THCH was downgraded for governance and financial viability to non-complaint grades of G3/V3.

The Regulator of Social Housing found that THCH was “unable to meet the costs of its day-to-day operating activities and repair liabilities” and was looking at a covenant waiver from its funder.

Steve Stride, chief executive of Poplar Harca, said the landlord was “obviously disappointed” that talks had ended.

He added: “We firmly believe in the benefits a merger could bring to residents, and also both businesses.”

The plans had met some opposition from residents.

However, the merger looked set to be completed in the spring after a resident consultation and survey in December gave the boards of both landlords the green light to go ahead with the plans.

A total of 1,098 residents from both landlords responded to a survey on the proposed merger, with 74% of Poplar Harca and 62% of THCH respondents expressing positive or neutral sentiments about the plans.

THCH said it had also addressed concerns from some of its residents who had submitted separate petitions.

A petition in October by around 1,000 residents had demanded more information and the exploration of alternatives, following news of the merger talks in June.

In July, one month after the talks were announced, dozens of residents staged a protest at the office of TCHC in frustration at feeling left out of merger discussions.

Both housing associations did reiterate their commitment to “collaborating in the future to provide residents with the best possible services and remain committed to work together to address the housing challenges in Tower Hamlets”.