Manchester housing associations set to merge

TWO Manchester housing associations,  City South and Eastlands Homes have announced a plan to merge to creatie a new  group with 12,400 homes and net assets of more than £100m.

In a statement the two organisations, which jointly employ more than 500 people, said their board believe the combination is the best way to grow and strengthen both organisations and deliver long-term improvements to communities in south and east Manchester.

Both will now begin formal discussions over forming a new housing group and start a six week consultation with their tenants and leaseholders.

The housing associations were set up following a stock transfer of council houses from Manchester City Council, Eastlands Homes in 2003 and City South in 2008, and both have carried out multi-million pound improvement programmes since then.

Geographically the housing associations are almost neighbours, with Eastlands Homes working in the Beswick, Clayton, Openshaw, Ardwick, Gorton, Levenshulme, Longsight and Rusholme areas of east and south Manchester; while City South has homes in Hulme, Fallowfield, Moss Side and Whalley Range.

The proposed new group structure would mean that City South and Eastlands Homes would keep their own identities as subsidiaries, but would come under the umbrella of a new parent organisation.

Dave Power, chief executive of City South Manchester Housing Trust, said: “One of the main drivers of the partnership is a new social innovation agenda to maximise opportunities for our residents and the integrated management of our neighbourhoods.

“Neither organisation wants to stand still and we know that our future lies in strengthening the organisations so we can continue to provide the very best homes and services for our customers.”

Sheila Doran, chief executive of Eastlands Homes, added: “The two organisations have similar ambitions and values, and share the view that building communities is what matters most to us.

“There is also a logical geographical fit as well as we are situated relatively close together. We will take our different strengths and areas of expertise and bring them together to create a very effective partnership.”

With the formal part of the process now underway both parties will be working closely with their funders and regulators on the legal, financial and governance arrangements. They are working towards completion in April 2015.