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Merger plans to create UK’s largest housing association abandoned
Plans for a merger that would have seen the creation of the country’s largest housing association have been scrapped, it has been announced.
Sanctuary and Southern Housing Group announced to the stock market this morning that they have mutually agreed not to pursue the merger.
A joint statement said: “Sanctuary and Southern have mutually agreed to not pursue the potential business combination announced earlier in the year.
“While the discussions about the partnership have been positive, it was agreed that the combination would not deliver all of the intended benefits within the planned timescale.
“Both organisations are in continuing discussions about a close working relationship and exploring possible future joint initiatives.”
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With a combined stock portfolio of 130,000 homes, the merger would have created the UK’s largest social landlord.
Sanctuary and Southern first announced the potential merger in February, when the housing associations said full proposals would be put forward in the summer.
Sanctuary currently has a turnover of £763m and 13,500 staff, while Southern has a turnover of £236m and a workforce of 1,000 staff members.
Sanctuary is a national housing provider and has homes across the country as well as in Scotland through its Scottish arm, Sanctuary Scotland. Southern is focused on London and the South East of England and has homes in the Isle of Wight, Reading and a number of London boroughs.
The news of the potential merger came amid a flurry of other mergers and potential unions announced at the beginning of the year, including a partnership between PA Housing and Accent Group to create a 43,000-home association.
Sanctuary previously looked to merge with extra-care and retirement specialist Housing 21 in 2016. Talks eventually broke down with the 32,000-home landlord after Sanctuary said “operational synergies were not met by an acceptable cultural fit”.
