Housing association mergers: A necessity for the future?
Malcolm Levi, Chief Executive, Home Group
Ewan Fraser, Chief Executive, Dunedin Canmore Housing Association
The session contrasted the different experiences of housing association mergers north and south of the border.
Malcolm Levi painted a picture of an England where mergers between housing associations are popular as associations strive to make efficiency savings and access preferential borrowing rates. New regional housing associations are beginning to dominate the sector.
In his opinion, by 2010 housing associations will dominate regeneration and development activity. As a result, housing associations that want to continue to develop new housing are forced to merge.
Other drivers for mergers are the desire to improve services to tenants and occasionally to rescue struggling housing associations.
Ewan Fraser talked about his experience of being Chief Executive of a housing association that had gone through a merger. Dunedin and Canmore had merged to form an organisation that was financially stronger and could provide a more effective development service. He explained how the boards of both associations and felt that the merger was the only way to protect long term affordability.
The new organisation faced a number of challenges after the merger. Some staff were resistant to change as they were keen to retain their strong local identities. He explained that the new association had its own new identity reflecting the fact that there had been a merger of two organisations and not a take over by a dominant party. He also said that the initial differences and a dip in service had been resolved and the organisation was now stronger and more efficient. He urged any associations considering a merger to take a long term view at the aims and benefits of the process. He also underlined the importance of tenant participation in any merger and any new organisation.