Housing association deal expected to lead to 20,000 new North West homes

From left: Aubrey Adams (L&Q chair), Larry Gold, David Montague, Edna Robinson (THT chair)

Two of the country’s biggest housing associations are considering a deal that could lead to 20,000 new homes being built in the North West.

L&Q and Trafford Housing Trust (THT) have announced that they are in talks which will see THT become a wholly-owned subsidiary of L&Q.

The acquisition is expected to complete in June, subject to due diligence, customer consultation and the development of a five-year business plan.

The deal will build on an existing joint venture partnership that has already seen 679 housing starts with a further 1,493 in the pipeline since it was launched in 2016.

The new agreement will unlock a further £4bn of investment in the North West by combining the resources of the two housing associations to create 20,000 new homes over the next 10 years.

At least half of these homes will be affordable.

Around £2m will be put aside to improve the standard of THT’s existing homes, as they come up for re-let.

This includes modernising, re-painting and fitting carpets. This is part of L&Q’s £225 million annual investment in existing homes.

Over time, there will be savings by removing duplication and increasing efficiencies.

However, the acquisition is focused on investment and growth and there will be no compulsory redundancies as a direct result of the acquisition.

While London and the South East will continue to be a major area of operation and growth, L&Q has been expanding its geographical focus.

Through the acquisition, L&Q will gain access to the North West through THT’s local knowledge, relationships and strong reputation for innovation and delivery.

THT will benefit from the scale, financial strength and resilience of one of the largest and most successful charitable housing providers in the country, with unparalleled access to strategic land.

THT’s existing management team will continue to be responsible for local service delivery, accountable to the THT Board.

A newly-created North West Foundation will invest in local communities to help the most vulnerable in society, including projects to tackle poverty and support people experiencing domestic violence, mental health and debt problems, as well as improving the lives of the region’s aging population.

The Foundation will also fund projects to help young people and the hard-to-employ back into work, as well as increasing skills amongst THT’s own workforce through an L&Q Academy in the North West, mirroring its successful work in London and the South East.

As part of the acquisition, THT chief Matthew Gardiner, who has led the company since it was established 15 years ago, will step down and be succeeded by current acting chief executive Larry Gold.

Matthew has spent the past few months on secondment as head of Ideation for L&Q Group, leading innovation projects, and this will become permanent.

THT Chairman Edna Robinson will join L&Q’s Group Board to help shape future strategy.

L&Q Group Chief Executive David Montague said: “L&Q has an ambitious plan to build 100,000 quality new homes over the next 10 years to tackle the national housing crisis.

“We see THT as a gateway to the North West, an area of outstanding growth that needs more high quality, affordable homes.

“We are excited by the opportunity to invest in the North West with a partner that shares our social purpose, values and ambition, has excellent local knowledge and a strong reputation for innovation and delivery.”

Larry Gold added: “This is a unique creation that will be built on true partnership and the strength of our vision, and the people who will deliver it.

“As part of L&Q, we’ll create significant social impact in the North West at scale and pace and strive to find solutions to the national housing crisis.

“We will deliver an extensive programme of new development and regeneration projects, as well as improving homes and services for our existing customers.”

L&Q is one of the UK’s leading housing associations and developers, managing more than 90,000 homes across London and the South East.

Trafford Housing Trust is a profit-for-purpose housing association established in 2005, following a large stock transfer from Trafford Council.

THT has 18,000 tenants living in 9,000 homes for social and affordable rent in Trafford

THT recently expanded its new build programme to build homes for rent and sale across Greater Manchester and the North West of England.

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