Two non-compliant lease-based providers push on with merger plans

Manchester-based BeST is the larger of the two, operating 1,369 homes across England and Wales. Westmoreland manages 971 homes. The new organisation will hold leases for 425 housing blocks.

Tom Miskell, chair of BeST, said the group is “excited about the potential of this merger to create a stronger, more efficient organisation that can better meet the needs of our customers”.

BeST was found non-compliant with the Regulator of Social Housing’s (RSH) governance and viability standards in May 2019, partly as it had “no long-term financial plan” that showed it could continue to meet its lease obligations, the RSH said.

In its last reported year to September 2023, BeST recorded a deficit of £1.9m on turnover of £27.2m.

Westmoreland was handed a G3/V3 rating in November 2018 and was subsequently downgraded to G4 nearly a year later after temporarily entering the regulator’s insolvency process.

The provider was also found to have breached the Rent Standard in October 2020.

The RSH does not play a part in approving mergers between registered providers.

However, a spokesperson for the agency said: “Where providers are failing to deliver the outcomes of the standards, the priority of the board must be to put things right. We will continue to engage actively with all landlords who are failing, including keeping our range of regulatory interventions under review.”

Jayne Francis-Ward, chair of Westmoreland Supported Housing, said it is confident the tie-up will “help us build a more resilient and customer-focused organisation”.

Westmoreland provides supported housing and works with care providers to deliver accommodation and support for vulnerable adults with complex learning and physical disabilities, according to the regulator.

Westmoreland is a lessee of Triple Point Social Housing REIT and Civitas.

Last summer Triple Point transferred an extra 38 homes to Westmoreland after ending its relationship with another of its lessees, Parasol Homes. 

In a report, published this month, the RSH warned that “significant issues” remain within leased-based provision of specialised supported housing.