Amicus and Horizon plan merger to create sixth-biggest RSL

Two housing associations based in the south of England are set to merge, creating one of the largest associations in the country.

The proposed merger between Amicus Group and Horizon Housing Group could form the country’s sixth-biggest association, with 29,000 homes under management, a turnover of £130m and £857m of assets.

A joint statement issued by the associations said they had “agreed that detailed discussions should begin into the principle of a merger”. The negotiators are expected to report back to their respective boards by the end of June.

If a merger is approved, it would not be finalised until 1 April 2006 at the earliest.

An Amicus spokeswoman said the talks would focus on how a link-up would benefit tenants.

“The key test is if it will deliver improved services,” she said. “We would want the efficiency savings generated to be directed into improving services and building more homes.” She added that the potential scale of savings would be determined in the next three months.

Although the associations do not expect significant job losses, some senior posts could be under threat. The spokeswoman said: “The main impact will be on senior-level posts in central services where there is a duplication, but [we] envisage a long lead-in period of up to three years.”

She added that it was too early to say who would lead the merged association.

Horizon Housing manages 16,309 homes in London and the Home Counties. Amicus Group, led by Steve Harriott, manages about 12,774 homes in Kent, London and East Sussex.

Ben Wilson, chief executive at Horizon, said: “A merger offers an opportunity to create a strong regional group offering enhanced benefits to residents, staff and stakeholders.”

The Amicus-Horizon deal is the latest in a series of housing association link-ups.

The merger of Circle 33 and Anglia is expected to get Housing Corporation approval next month and Keynote is due to make an announcement on the progress of merger talks with Prime Focus on 26 April.

Fosseway Housing Association is to join West Midlands-based Bromford Housing Group. The merged landlord will run 19,000 homes.