Housing associations will create a 75,000-home housing association

Riverside and One Housing Group (OHG) have agreed a merger to create one of the largest housing associations in the United Kingdom next month.

Under the deal announced yesterday, OHG, which owns and manages 20,000 homes, will join 55,000-home Riverside as a subsidiary following expected approval from the Financial Conduct Authority on 1 December.

terrie alafat resize

Terrie Alafat, chair of Riverside

The two organisations have been in talks about merging since the summer. They said then that the merger would enable a 40% increase in development capacity.

Riverside completed 766 homes in 2020/21 and, before the merger was agreed, was aiming to build between 3,000 and 4,000 over three years to 2023. OHG, meanwhile, reported a £25.5m pre-tax deficit for 2021 as it was hit by Covid disruption, fire safety costs and a development write-down. It built 338 homes in 2019/20.

It is also hoped the move would enable greater investment into One Housing Group’s stock, the lack of which was flagged as a key risk by the Social Housing Regulator in January.

Riverside believes a merger would enable it to expand its reach into London and the South east, where One Housing Group primarily operates, as well as strengthening its care and support offer, which is a key focus for One.

In a joint statement to the stock market, the organisations said: “Together we will have the scale to do more, with particular expertise in providing care and support for some of the UK’s most ‘at risk’ groups,

“We will have a portfolio of properties stretching across the UK and a focus on delivering great services locally.

“The partnership is also designed to create a joint organisation with the scale to offer more opportunities to our customers and staff, whilst being better able to adapt to the pressures facing the housing sector.”

IN NUMBERS: Riverside and One Housing Group

 

Riverside:

Turnover: £374m

Pre-tax surplus: £49m

Homes owned/managed: 58.360

Homes built: 766

Source: 2020/21 financial statement

 

One Housing Group:

Turnover: £184m

Surplus: £25.6m

Homes owned/managed: 17,312

Homes built in 2019/20: 338

Source: 2020/21 financial statement unless stated otherwise

It is also hoped the move would enable greater investment into One Housing Group’s stock the lack of which was flagged as a key risk by the Social Housing Regulator in January.

The merger deal followed a six-week consultation and survey of residents, which revealed 40% of respondents in favour of the merger, 37% neutral and 23% opposed.

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