A merger between Sovereign and Network will create a massive housing corporation with 82,000 homes. The boards of the two organizations have approved the move and believe it will allow them to build 25,000 homes in ten years. The duo confirmed this would be 4,000 more than they originally intended to build separately.
The merger proposal is a much-needed help when the housing cooperative’s finances are under pressure to invest in current stock due to pandemic delays, regulatory pressures, and spending on decarbonization and building security.
Housing associations have battled cost inflation and a 7% rent cap along with the rest of the economy, according to Housing Today.
A detailed view of the plan
The boards of the two organizations have approved the move and believe it will enable them to build 25,000 homes in ten years. According to the duo, that would be 4,000 more than they had planned as independent organizations. Under the terms of the agreement, Network will initially become a subsidiary of Sovereign on October 1. In April 2025, they would next consider a full merger, where Network would no longer exist as a separate organization.
The organization is known as the Sovereign Network Group and is one of the best known housing associations in the UK.
The company roles
Leading this expanded provider is Sovereign’s current Chief Executive, Mark Washer. In contrast, Helen Evans, the chief executive officer of Network Homes, will be the deputy chief executive officer.
Jon Gooding, the current interim chairman of the network, will serve as vice chairman and Paul Massara, the current chairman of Sovereign, will serve as chairman of the Sovereign Network.
The combined turnover of the two organizations in 2021-2022 was £666 million. The organizations expect their annual income to reach £830m in 2024-2025.