Housing Corporation's Northern supremo sets out 10-year vision of rationalisation
The Housing Corporation's most senior figure in the North of England has set out a radical vision for the sector's future, calling for multiple mergers and stock rationalisation over the next 10 years.

If registered social landlords do not do this voluntarily, the corporation should consider stepping in and forcing mergers, according to John Carleton, head of investment and regeneration in the North.

Carleton's comments are the clearest signal yet that the corporation will not tolerate RSLs refusing to fall into line.

At the moment, there are 137 RSLs operating in the North-west region alone, although there have already been some efforts to rationalise in Manchester and Liverpool (HT 26 September 2003, page 12).

Carleton said that as the corporation's development partners increase their building programmes, they will need to find more ways of raising cash. One way would be mergers with smaller RSLs that have the balance sheet capacity to borrow but do not wish to develop.

He added that there would still be a role for smaller, community-based organisations to manage housing but that they did not need to develop, or even own, their own stock.

He said: "There's a need for rationalisation. It's hard to know what are the direct levers to make that happen because RSLs are public sector organisations without the pressures of profit-making businesses.

"I tend to favour the view that independent businesses will look at the future and make decisions about their own business, but I think the corporation should have a central role in how the sector evolves because we have huge investment in it."

Ian Perry, chief executive of 15,000-home, Manchester-based Harvest Housing Group, welcomed Carleton's comments. Perry said: "I'd like to see the corporation far more active in arranging mergers. At the moment they just seem to happen by accident; to have someone arranging the marriages makes more sense."

But smaller RSLs were less enthusiastic.

Anil Singh, chief executive of Bradford-based Manningham Housing Association, said: "Carleton's comments are laudable but I would question the corporation's ability to deliver such a programme. He should also consider that smaller RSLs are often more efficient than large corporate monsters."

Source

Housing Today