Midlands landlords in merger talks to create 32,000-home group amid sector ‘challenges’

The proposed new group would be “focused on unlocking efficiency savings to create additional capacity to invest in new homes, existing homes and delivery of services”, WHG said. 

If the tie-up goes ahead, it will be the latest in a string of mergers seen in the sector in the past few years, as landlords seek to protect themselves amid the ongoing tough operating conditions and widespread financial challenges.

Gary Fulford, current chief executive of WHG, is expected to become chief executive designate of the combined group, while WHG’s chair Gary Moreton will be board chair designate.

Mr Fulford said: “We are excited to work together, with the aim of combining our shared strengths, resources and expertise to create an even stronger, more resilient organisation.”

Sinéad Butters, chief executive of Aspire, will remain “closely involved to support a smooth leadership transition”, the groups said.

In in last reported full year, WHG saw its surplus drop by a quarter year-on-year to £24.4m, despite a rise in turnover to £146m. 

It completed 467 homes and has a target of 300 handovers a year. 

The group, which was formed in 2003 following a large scale voluntary transfer from Walsall Council, has top grades with the Regulator of Social Housing (RSH) of G1/V1/C1. 

Last month, Moody’s retained its A2 credit rating for WHG and a stable outlook, but noted its “high debt burden”. 

Aspire recorded a slight surplus increase in its last full year to £3.7m on turnover of £54.8m. The landlord has grades of C1/G1/V2 with the RSH.

Aspire was handed G2/V2 grades by the regulator around three years ago, but regained its G1 status last year.