Orbit Group sells 250 homes as part of ongoing stock rationalisation strategy

Orbit Group has sold 250 of its homes in East Hertfordshire and Epping Forest to 6,000-home housing association B3Living.

The sale is part of Orbit’s ongoing strategy to improve the ‘geographical efficiency’ of its housing stock, following previous sales to L&G Affordable Homes and non-profit older people’s housing management company ELM.

The 250-home acquisition represents a nearly 5% stock increase for B3 Living. B3Living noted that it is the closest landlord to the area where the homes are located, which will help ensure it maintains service delivery for customers.

The majority of the 250 homes are for social rent, while some are affordable rent, leasehold and shared ownership homes.

The properties are primarily houses, alongside some bungalows and flats, and 85% of them have an EPC C rating or higher.

Orbit ran an initial consultation in March and a final consultation between 30 September and 14 October to obtain feedback from residents affected by the transfer.

David Biggs, chair of the board at B3Living, said: “It is excellent to take on more residents in the communities where we work. I must extend thanks to Orbit Group for facilitating such a smooth transaction for us and the residents affected.

Biggs said that the transfer is “a significant addition to our housing portfolio and a valuable opportunity to grow as a business amidst a climate of economic and operational uncertainty”.

He noted that it enables B3Living to “consolidate the strong presence in this area”, adding “we look forward to offering our new residents high-quality local services and personalised support to thrive in their homes”.

Trevor Graham, interim chief property officer at Orbit, said: “We are delighted to complete this transfer with B3Living, as part of our densification strategy to create operational economies of scale across our wider portfolio.”

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Graham added: “We have worked closely with B3Living to make the transition as seamless as possible for customers in the area and are confident the team at B3Living will continue to provide them with quality local service.”

Orbit manages 47,000 affordable homes in the Midlands, East and South East of England.

Jonathan Wallbank, group finance director at Orbit, said the move is part of the landlord’s strategy to “increase geographical efficiencies and to improve customer satisfaction, value for money and services to customers.”

He added that the proceeds of the sale would be reinvested in Orbit’s homes and used to build and regenerate homes in its key operational areas. As part of its corporate strategy, Orbit plans to build and regenerate 5,700 homes between 2024 and 2030.

Jonathan Cox, partner and head of the social housing team at law firm Anthony Collins, who represented B3Living in the deal, said: “This is a significant deal for B3Living as it represents a near 5% increase in its housing stock and extends the organisation’s footprint. 

“The fact that the transfer has taken place at a time when housing associations are facing extreme challenges in the form of cost increases, underfunding, and increasing regulatory pressures, shows just how important economies of scale and geographical considerations have become. The transaction could also help to unlock investment opportunities.”