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.