Major housing associations Genesis and Thames Valley Housing are set to merge, creating a 47,000-home organisation
According to AJ-sister title Construction News, the merger would see the new company build 3,000 new homes a year.
An outline business case has been agreed by the two boards, with the deal subject to board approval for a full business case to be produced over the next three months.
Genesis surprised the housing association sector earlier this year when it announced it would no longer build housing for affordable or social rent.
At the time, it said this was in response to measures introduced by George Osborne’s post-election budget, including a one per cent reduction in social rent.
Genesis chief executive Neil Hadden said of the merger: ‘The environment in which housing associations operate has changed very substantially.
‘Associations must be agile, innovative and resilient.
‘We still want to be building homes and creating thriving communities to support our customers in another 50 years – we believe that this proposed merger of two organisations with similar values and similar approaches will create a firm foundation for the future.’
Thames Valley Housing Association chief executive Geeta Nanda said the move would create a ‘dynamic organisation’, which will deliver thousands of new homes.
‘We have a huge housing crisis and we need new and bold solutions to deal with it. Of the 3,000 homes we intend to build as a merged organisation, 1,800 will be affordable homes.
‘Both Thames Valley and Genesis have a strong commercial track record of getting homes built across a range of different tenures.
‘Both have a strong social purpose and core values that match. We jointly believe that this merger proposal would leverage the best of both organisations and their partnerships, and that we would be stronger together.’