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Places for People promises Origin residents £50m investment in merger talks
Places for People has promised to invest “at least” £50m in existing Origin homes over a five to 10-year period as the two landlords explore a possible merger.
Alongside the investment in London-based Origin Housing’s existing stock, residents were also told that the brand would revert to its original name, St Pancras.
In the long term, the plan is to fully integrate into Places for People after around two years.
The potential tie-up between the giant landlord and 7,000-home Origin was announced last week, with Carol Carter, chief executive of Origin, saying the plans would be “hugely beneficial to Origin’s residents, our local communities, our staff and all other stakeholders”.
An email circulated to Origin residents on Friday 20 October, seen by Inside Housing, said the London provider had begun a six-week tenant consultation that will finish on 7 December.
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The email said: “We will initially keep our name and brand, but with an intention to revert to the name St Pancras Homes to recognise our centenary in 2024.
“There is an expectation in the longer term (after two or more years) to integrate fully with the group through a regionalised structure, while retaining locally responsive services.”
Origin cited “inflation, interest rates, the cost of living, shortages of skills and increased demands on the social housing sector” as reasons for the merger.
The landlord added: “We need to build our financial strength and capacity for the future.”
As well as the new multimillion-pound investment in existing Origin stock, the email said the tie-up would result in improved services and strengthened local accountability, while repairs and support services will continue with existing staff.
Both the board and the senior team will remain in place, it added.
Ms Carter told Inside Housing: “The proposal includes at least £50m of investment into residents’ homes over a five to 10-year period, with the exact figure to be defined once the data from recent stock condition survey work has been analysed over the coming weeks.”
On the name change, she said: “There is a proposal to revert to the St Pancras name to mark our centenary in 2024 and underline our continued commitment to the principles and ethos of our founders, and we are interested to hear feedback on this suggestion.
“The terms of the proposed partnership with Places for People mean we would join the group as a subsidiary, with a formal review within two years to consider fuller integration.”
Origin, which owns and manages homes primarily across London and Hertfordshire, was placed on the Regulator of Social Housing’s (RSH) gradings under review list earlier this month.
News of the RSH’s investigation followed an earlier report by Inside Housing which revealed that Origin is pulling out of its operations in Essex and putting its properties up for sale.
Inside Housing can also reveal that Origin is selling Normanhurst, a 44-flat retirement home in Cambridge. An Origin spokesperson said it was “looking for an alternative provider and consulting residents on this proposal”.
The sale is part of “a small programme of disposals in other areas to help support our financial plan”, Origin added.
Places for People said it had nothing to add to Origin’s response regarding the branding and investment plans.
