Talks over largest ever housing association merger collapse

The largest merger ever proposed in the housing association sector has collapsed.

L&Q, Hyde Group and East Thames in April said they would merge creating a social landlord with more than 135,000 homes and with plans to develop a further 100,000 homes in London and the South East.

The trio said at the time that merging would allow them to construct 35,000 more homes than they could separately, paid for through efficiency savings out at £50m a year within five years.

But L&Q and Hyde have now said that unspecified practical difficulties mean they cannot merge, though the former will still work towards a tie-up with East Thames.

An L&Q statement said: “Since the announcement in April, the three organisations have been working closely together to understand each other’s businesses and plans. We wanted to be certain that we could achieve more together than we could alone.

“As a result of this work, L&Q and The Hyde Group have today mutually agreed to end our merger plans.”

It went on to refer to “practical issues which cannot be easily overcome, and we concluded that…resolving these issues would require time that we do not have”.

L&Q and East Thames would together seek to deliver 100,000 new homes, a training academy and a care and support subsidiary.

Mark Smulian