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Merger Could Create Top Four UK Housebuilder

Three of the biggest housing associations in London are in an advanced stage of merger talks.

The goal is to establish a social landlord with 135,000 homes in its portfolio and the ability to create 100,000 more in 10 years. If the merger goes ahead, East Thames, The Hyde Group, and L&Q will unite to create one of the UK’s top four biggest housebuilders.

The massive housing group, which would be worth close to £30bn, wants to construct these new homes across the capital and the South East, resulting in 35,000 more residences than each member could have accomplished alone.

The goal will entail a £25bn investment over the next 10 years, making the organisation one of the construction industry’s mega-clients.

The Hyde Group’s Chief Executive, Elaine Bailey, said that the partnership between all three associations will enable the delivery of a house building programme that each member could not have delivered on their own.

Ms Bailey said that they are stronger together, being more capable financially when it comes to delivering and managing their housing output. All profits realised will be re-invested in the services offered and into building more badly needed homes.

East Thames, The Hyde Group, and L&Q estimate that within five years they will realise an annual savings of £50m, mainly through combining administrative functions, IT investment, and procurement ability.

 

Specialists in Structural Defects

This larger new-build scheme has a self-imposed goal of 25,000 affordable homes for first-time homebuyers and an equal number for affordable rent, with the remaining 50,000 for market sale and rent.

The additional 35,000 new homes constructed as a result of the suggested merger represent a £9bn investment.

Mr. Brandon Lewis, Housing Minister, greeted the move enthusiastically. He said that combining the strengths of each company will increase their build output, and provide affordable homes to thousands of people across London and the South East.

The merger will also create a new training academy with accredited apprenticeship schemes. East Thames will bring an expertise that enables a bigger support and care subsidiary, accommodating supported housing from all three partners and catering for London’s aging population by providing housing for older and vulnerable people.

The new group will reserve £250m for community investment, providing funds for groups and like-minded charities to complete projects that make London and the South East a better place to call home.

L&Q Chief Executive David Montague said that the plans will allow all three companies to tackle the housing crisis directly, building more homes quickly and efficiently and creating beautiful, sustainable communities.

He confirmed that the united mission will always be continual provision of affordable homes for those who need them.

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