Manchester providers explore merger
Southway Housing Trust and Wythenshawe Community Housing Group are in talks about a deal that would create the city’s largest social housing organisation, with around 21,000 homes.
The housing providers said that financially the new housing association would be stronger and able to invest more in improving and maintaining existing homes, providing better repairs and housing and advice services to help customers with the rising cost of living.
The new organisation would also be able to build more quality affordable homes for rent and shared ownership.
Between them, WCHG and Southway have already committed to develop 2,700 affordable homes by 2030, and a new combined organisation would be able to surpass this ambition.
The new organisation would also be able to invest more in communities, boosting the £15m the two have already pledged to invest over the next few years.
The merger would build on the strengths and local knowledge of both organisations to provide services that are more tailored to its communities and are shaped by residents.
A joint resident group, made up of existing Southway and WCHG customers, will be established to help shape proposals to ensure the merger plans represent a diverse range of resident voices.
All Southway and WCHG residents will be able to have their say on the plans in June as part of a 10-week consultation.
Southway currently manages more than 6,500 homes across Greater Manchester, with most of its homes in south Manchester areas such as Burnage, Chorlton, Didsbury and Withington.
WCHG owns and manages 14,000 homes in Wythenshawe and surrounding areas.
If the merger is approved in the autumn, Nick Crofts, WCHG’s current chair would be the new group chair of the new combined organisation, with John Bowker, currently Southway chief executive, becoming the new chief executive.
WCHG chief executive Nick Horne retired at the end of April. Executive director of finance, Simon Morris, has been acting as interim chief executive.
Southway’s John Bowker said: “This is an exciting opportunity for two successful housing associations with a wealth of local knowledge to come together to provide better and more tailored services for residents across south Manchester and the wider Greater Manchester region.
“As one organisation, we’d be financially stronger and more resilient to increase investment in building and maintaining homes, supporting residents with the rising costs of living and address other challenges facing social housing providers.
“It would be an equal partnership that makes the best use of combined skills and resource to provide better value for money and ultimately, services that are shaped by residents.”
Chair of the board at WCHG Nick Crofts added: “Throughout this process, we will remain focused on maintaining high-quality services and ensuring residents help shape the future of the new organisation, should the merger go ahead.
“By combining our strengths and experience, we can create a stronger organisation that is better placed to meet future challenges and deliver lasting benefits for tenants, residents and communities.
“We’re committed to keeping strong governance and long-term sustainability at the heart of every decision we make.”
WCHG is currently looking to clear some of its older stock in Wythenshawe, to be replaced by new housing, as reported earlier this week by Place North West.
Southway, meanwhile, put forward plans in February for 50 homes at Levenshulme Cricket Club, while its shared ownership arm Gecko Homes delivered homes at Chorlton Irish Club in March.
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Manchester Council housing stock was once one of the biggest in Europe. Throughout the 90s and early 2000s the stock was put in the hands of smaller housing associations. Smaller organisations were seen as being more community focused and more dedicated to the area they operatated in. Over recent years many of these smaller housing providers have merged in many ways replicating the previous large council run housing department. No doubt consultants have developed business plans which say that a meger of Wythenshawe housing and Southway will be more efficient and save a small fortune however I fear this may come at the expense of service delivery to the current residents of these two organisations. As these two housing associations grow and become one large organisation they could become more remote from their tenants.
By Anonymous
Yayyy…more over priced shared ownership homes!!
By Big Des
Maybe Southways should carry out promised work on homes they have in Burnage and Didsbury. Kitchen cabinets put in when first took over are laminated, which peels. Supposed to be replacing doors before COVID. They don’t maintain properties they have in these areas! And waiting times for repairs for plastering etc are extreme. Due to age of these properties and the fact Southways have neglected them since giving them cheap modernisation when first took over from Manchester Council.
By Southways tenant.