Sanctuary and Johnnie Johnson Housing complete merger

In December, Yvonne Castle stepped down as chief executive of JJH and was replaced by Kathryn Fox-Rogers, who is now leading Sanctuary’s JJH subsidiary in the role of managing director.

JJH’s 5,000 properties are located across the North West, the North East, Yorkshire and Derbyshire. It was set up in 1969 by James Edgar Johnson, a pilot who flew in the RAF during World War II. The housing association has maintained a close connection to veterans and the armed forces.

JJH has a G1 governance grading and a V2 financial viability grading following its last review by the Regulator of Social Housing in December 2022.

In its latest financial statements, for the year ending in April 2022, JJH recorded a lower surplus of £382,000 and saw its operating margin reduce five percentage points to 13%.

The association attributed this to “delays in the development programme impacting turnover, alongside increased void properties and higher costs than anticipated”.

Ms Fox-Rogers said: “This business combination creates a fantastic opportunity for both organisations, so I am delighted it is now completed.

“By joining Sanctuary, we can invest more in our residents’ homes while continuing to deliver high-quality local services.”

Craig Moule, group chief executive of Sanctuary, said: “I am confident that residents of both Sanctuary and Johnnie Johnson Housing will benefit as a result of this merger.”

He said: “Through mergers and acquisitions, we unlock financial capacity in smaller organisations to help them deliver more.

“Together we can reduce overheads and inefficiencies meaning there is more money available to spend on homes and services than if the two organisations had continued to operate separately.”

Sanctuary posted a surplus before tax of £101.3m in July last year. This was largely thanks to a £38.5m net gain on acquisitions from Swan, following their rescue merger earlier in the year.