Stonewater completes takeover of 1,600-home Surrey housing association

Stonewater has completed its takeover of 1,600-home Mount Green Housing Association

The 37,000-home Leicester-based provider confirmed in a short trading update today that the acquisition of the Surrey association has been finalised.

Bill Flood, chief executive of Mount Green, has said previously the move to join Stonewater would offer the smaller association ‘stronger financial security” enabling it to better guarantee its investment plans to improve its housing stock.

In February 2022 the Regulator of Social Housing described Mount Green’s financial performance as “weak” and said it is “sensitive to relatively small changes in costs and income, with several scenarios resulting in a breach of its interest cover covenant.”

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Mount Green is however compliant with regulatory standards with a G2 and V2 score for governance and viability.

The latest deal follows Stonewater taking over 550-home sustainable development specialist Greenoak last year. The association also acquired 370 homes from Metropolitan Thames Valley last summer.

It built 963 homes in 2022/23 with 3,440 in contract as of 31 March.