Arhag to become part of Hyde Group next month

London-based housing association Arhag is set to become part of the Hyde Group next month after the boards of both providers gave their approval to the move.

The decision came after a six-week consultation with customers at Arhag, which provides just under 1,000 homes in the capital, largely in Newham, Tower Hamlets and Haringey.

Set up in 1979 to serve the housing needs of refugees from Africa, Arhag was placed on the Regulator for Social Housing’s gradings under review list in December, with the body revealing it was “investigating matters which may indicate serious failings”.

Arhag subsequently announced in January that it would consult residents on a merger with Hyde, and it has now confirmed it will join the 125,000-home provider as a subsidiary from 1 April.

The full legal process to transfer its assets, liabilities and responsibilities into the new structure is expected to take six months.

By joining the larger organisation, Arhag says its customers will benefit from a landlord that is more financially robust and able to deliver better repairs and maintenance through combined expertise.

Roughly 8% of Arhag’s customers responded to the consultation, with almost all responding in favour of the proposal.

Anne McLoughlin, interim chief executive officer at Arhag, said: “This move provides Arhag with stability and the opportunity to provide customers with a stronger and better service. 

“We share a commitment with Hyde to work closely with customers and communities, and I’m excited about the benefits Hyde will be able to offer.  

“I want to thank all those customers who took part in the consultation exercise. We’ve listened to the feedback and our Board studied this closely when making the decision to go ahead.”

Andy Hulme, group chief executive at the Hyde Group, added: “I’m delighted that both Boards have agreed to go ahead, after consulting with Arhag’s customers. 

“Throughout the process so far, we’ve found a real alignment of purpose between the organisations, which is rooted in putting customers first.

“We look forward to welcoming Arhag customers into the Hyde Group.”