New organisation to deliver 100,000 new homes
Making a real difference to the housing crisis in London and the South East
L&Q, The Hyde Group and East Thames have entered into merger talks with a view to creating one of the country’s top four largest house builders.
Together, the three organisations will be able to build 100,000 new homes across London and the South East - 35,000 more homes than they could have achieved alone, representing an investment of £25 billion over the next ten years.
Half of these new homes will be for people on lower incomes, making the new organisation the largest provider of affordable homes in the country. In total, 25,000 affordable new homes will be set aside for first time buyers and 25,000 new homes will be for affordable rent, with the remaining 50,000 new homes for market rent and sale.
The 35,000 additional new homes built as a result of this proposed merger represents an investment of £9 billion and is welcomed by the Housing Minister, Brandon Lewis MP, who said: “This shows what can be achieved by combining the strengths of each organisation. It will make a real difference to increase their capacity to build, house and help thousands of people across London and the South East. I welcome the added focus on helping our ageing population and the launch of a training academy for staff and residents. In my mind, this is exactly what housing associations should be doing.”
The proposed merger of three of the nation’s leading housing associations is a positive step for the sector. In addition to building 100,000 new homes, the new organisation will also be responsible for managing 135,000 homes.
The new organisation, worth an estimated £30 billion, will continue to provide good quality homes as well as better and easier access to services for residents, delivering these through a new regional structure to ensure continued local accountability.
The merger will also see the creation of a new training academy with a £5 million a year increase in investment over existing training budgets. This will provide nationally accredited apprenticeship schemes, greater career development opportunities for staff and training and employment options for residents in the communities they serve.
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