Hyde enters merger talks with non-compliant Tower Hamlets Community Housing

By Carl Brown2024-08-22T09:23:00+01:00

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Troubled 3,500-home THCH would join 45,000-home Hyde as a subsidiary if deal goes ahead

Housing association Hyde has entered merger discussions with troubled 3,500-home Tower Hamlets Community Housing (THCH).

The 45,000-home provider this morning announced it is launching a six-week consultation on a ‘business combination’ with the east London landlord. This would mean THCH, which is currently non-compliant with a regulatory standard, joining Hyde as a subsidiary.

merger

A Hyde spokesperson said the larger association’s ‘strong foundations and resilience’ will enable THCH to “do more and be more to its residents’”.

THCH in March was found to have breached the Regulator of Social Housing’s (RSH) governance and financial viability standard. RSH said it “lacks assurance that THCH has a robust planning, risk and control framework” and that the board had failed to demonstrate it has appropriate mitigation strategies in place to ensure its long-term viability.

RSH also said THCH, which was given a G3 and V3 grades for governance and viability, has a “weak financial position”, did not budget properly for building safety costs and is unable to meet the costs of its day-to-day operating activities from its rental income.

Hyde this morning said it will make a number of commitments to THCH, including providing a repairs service to tenants, speeding up investment in homes, providing a local presence through a neighbourhood model, along with access to support and advice services and investment in community centres.

THCH had previously been in merger talks with 9,000-home Poplar HARCA, however these came to an end in April.

Andy Hulme, chief executive officer at the Hyde Group, said: “We’re at early stages of our conversations with the THCH team, but we wanted to let our customers and stakeholders know as soon as possible. There’s no change expected for existing customers, and we’ll keep people updated as we move forwards.”

Anita Khan, chief executive officer at THCH, said: “We chose Hyde as a potential partner because our goals and values strongly align with their dedication to the community and commitment to doing more.

“We understand that some residents might feel uneasy about the idea of joining a larger housing association, but this partnership will strengthen our ability to provide local services.”