OREANDA-NEWS. December 15, 2015. The Boards of two of the UK's largest housing associations, Circle Anglia Limited (operating as Circle Housing) and Affinity Sutton, are today announcing their intention to merge.  This follows their Boards' consideration of a business case, at Board Meetings, which presented a compelling case for merger.

A merger of the two organisations would form one of Europe's largest housing associations with almost 127,000 properties which would be home to almost 500,000 people across England.  This would enable the organisations to create a stronger business model, better able to build more homes and invest more in local communities.

The news comes in the context of an acute shortage of new housing in the UK. The country needs at least 250,000 new homes a year, and yet only 140,000 are being built. The new Group will have the ambition to deliver 5,000 new homes annually, with 50,000 homes being built in the 10 years from 2019, some 30,000 more homes than the planned output of the two individual Groups. We would expect the new Group will be among the top five house builders in England.

Recent government announcements provide a further catalyst for the sector to work more efficiently and consider consolidation as organisations seek ways to manage the impact of government reforms. 

The organisations are now working on progressing with the merger arrangements and will be consulting with residents in the New Year. Subject to completion of due diligence and regulatory consent arrangements, the merger would be concluded by Summer 2016.  Lenders and investors will be an essential part of that process as key partners for both Groups.  We will be making contact with lenders and investors over the coming weeks, and both Groups look forward to continuing these positive relationships.