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Riverside in ‘partnership’ talks with G15 housing association facing financial woes
A major London landlord that has encountered financial difficulty is in talks to become a subsidiary of another national housing association.
In a stock market update this morning, Riverside said it has agreed to work on “coming together in partnership” with One Housing later this year.
The announcement follows a torrid financial year for One Housing, a member of the G15 group of London’s largest housing associations, after reporting an £8.6m loss in January for 2019/20.
Riverside and One Housing said consultation will take place with customers, colleagues and key stakeholders as the plans are developed. A target date for One Housing to join Riverside has been set for the end of the year.
The housing associations also said there will be particular focus on engaging with residents to shape the consultation process and future plans for engagement.
Terrie Alafat, chair of Riverside, said: “We have a lot in common, based on our strong values and a clear social purpose. This includes a deep commitment to delivering vital care and support services for elderly customers, those who are at risk of becoming homeless and people who are mentally ill or have learning disabilities.
“There has never been a greater need for our homes and services, but we operate in an environment which is getting tougher, as the challenges faced by our customers intensify and standards rise – especially those relating to building safety and carbon reduction.
“This has led us to discuss how together; through a bigger and stronger group, we can deliver more for residents, customers and communities.”
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Caroline Corby, chair of One Housing, added: “Delivering more is all about having the capacity to build more quality homes, deliver estate regeneration, be an excellent landlord, provide excellent care and support services and extend home ownership opportunities.
“That is our shared ambition and something we believe we can achieve by pooling our strengths and resources in this way.
“Our geography is complementary and there is a real opportunity for us to become a sector-leading national organisation with the scale and span enabling us to influence even more, both nationally and regionally, while maintaining a focus on delivering great services locally.”
North West-based Riverside owns more 58,000 homes across England and has the highest possible grading from the Regulator of Social Housing (RSH) at G1/V1.
One Housing, which owns 17,000 homes in London and the South East, saw its £12.7m surplus recorded for 2018/19 slump to a £8.6m loss in 2019/20, with the landlord blaming financial pressures arising from fire safety spend, the coronavirus pandemic and expensive care contracts.
It was subsequently dealt a governance downgrade by the RSH, from G1 to G2. One Housing’s current regulatory grading is G2/V2.
In an interview with Inside Housing, One Housing chief executive Richard Hill said he expects financial difficulty to continue into the current financial year.
The announcement follows a spate of merger talks in recent months, including proposed talks between Sanctuary and Southern Housing Group and PA Housing and Accent Group, both of which have been abandoned.
A merger between Riverside and One Housing would create a landlord with more than 75,000 homes, making it the fifth largest in England.
Update at 11:30am, 24.06.21
This story was updated to include quotes from Ms Corby and Ms Alafat.
