RSLs agree deal for first large-scale swap of housing stock

15 Nov 01
Two housing associations are proposing to swap a total of 1,800 homes in an attempt to reduce their management costs.

16 November 2001

Orbit Housing Association, which owns 24,000 properties across the UK, wants to hand 900 homes in Bristol and Devon to the English Churches Housing Group. In exchange, Orbit would gain 900 homes currently owned by the ECHG in the Midlands.

The two registered social landlords are finalising the business case for the proposal, which is likely to be put to tenants in January. They said the deal would allow them to focus on housing strategies in fewer areas. 'We would withdraw from the West Country and they would withdraw from parts of the Midlands,' said an Orbit spokeswoman.

Orbit currently operates in 130 local authority areas while the ECHG has about 12,000 homes spread across 170 authorities. It is the first time that two or more RSLs have attempted an exchange on such a scale.

ECHG chief executive Peter Walters said: 'Both of us want to achieve high-quality cost-effective delivery and this can be done by achieving greater concentrations of stock.'

Valuers will have to decide whether there is an exchange of money between the associations. Staff transferring between RSLs would be protected under Transfer of Undertakings regulations.

PFnov2001

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