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Places for People gets approval for second merger in one week
Places for People has received approval for a second tie-up with a smaller landlord in the space of a week.
The 240,000-home association said that South Devon Rural Housing Association (SDR) is on track to become a subsidiary after its shareholders approved the plans, which were first announced in December.
SDR, which owns and manages 357 homes in the South West of England, said it consulted its residents on the plans and got the green light from its board on Thursday 8 February to proceed with the merger.
The formal merger process will begin in March, while SDR’s full integration into Places for People is being targeted for later in the year.
SDR was established in 1958 as Dartington Housing Association to provide homes for workers retiring from Dartington Hall Trust’s country estate.
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As well as owning its own stock, it manages stock for other housing associations and runs assisted living accommodation, housing for over-50s and flats for people with learning difficulties and mobility issues.
Its 2022-23 annual results recorded a post-tax deficit of £399,000, down from a surplus of £496,000 the previous year. Turnover also dipped to £3.4m, from £3.8m in 2021-22, primarily due to increased operating and financing costs. SDR has paused all development activity “due to the current economic climate”.
The news follows last week’s announcement that London-based Origin Housing will also join Places for People, having been approved by the 7,700-home landlord’s shareholders.
The Origin merger was first announced in October. Two months later, Origin was downgraded to non-compliant ratings of G3/V3 by the Regulator of Social Housing, partly over “inadequate resourcing and data errors” in its financial reporting.
Greg Reed, group chief executive of Places for People, said: “This merger will allow us to commit the resources needed to protect and build upon the great work SDR has done since it was established in 1958.”
He added: “Affordable housing customers should not be forced out of living in rural areas, particularly when it’s where they have built a life.
“We’ll work together to create opportunities to deliver more new affordable homes in this part of the country.”
Christine Candlish, chief executive of SDR, said she was confident the merger would be a “highly beneficial move for our customers and the broader community”.
She continued: “This merger enables both parties to go forward playing to their strengths – giving SDR the sustainability it needs to deliver its aims of providing more affordable homes in the South West, while enabling our senior partner to widen its scope and influence within our region.
“I’m pleased that the feedback from our recent consultation exercise among SDR residents demonstrated an understanding of the issues and broad support for the move. The future looks a lot brighter from here on in.”
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