Pathmeads in talks on managing 2000 homes in capital for Asset Trust

The private property investor is in discussions with Pathmeads Housing Association about managing up to 2000 homes the trust plans to buy in London.

The deal should be complete in the autumn and will take Asset Trust a step closer to its target of acquiring 10,000 affordable homes in the next five years.

Viv Rosser, the trust’s director of partnerships and development, said: “We want to invest in and own affordable housing but we want someone else to manage it.

“We’re in the first stages of discussion with Pathmeads, which is highly regarded by local authorities. The deal isn’t finalised but we like everything we have seen and heard.”

Pathmeads, the housing management arm of Genesis Housing Group, owns very few properties but manages 23,000.

Managing director Tom McGregor said the RSL had first begun working with Asset Trust as part of a consortium that included Family Housing Association, construction firm Laing O’Rourke, and developer Quintain, bidding for English Partnerships schemes.

“We have started talking to them about other ways we could work together,” he said.

We want to invest in affordable housing, but we want someone else to manage it

Viv Rosser, Asset Trust

“The conversation has been about them investing in affordable homes and us providing long-term management. We agreed we would work together but we haven’t negotiated a contract yet.”

No price has been decided but the association will have to keep to a range of performance indicators, including rent collection, customer satisfaction and repairs. It will also keep management and maintenance costs for the Asset Trust deal similar to the costs for its other social housing properties.

The Asset Trust has so far signed two deals with William Sutton Trust and Drum Housing Association, for 500 homes each over five years in Hampshire and Hertfordshire.

It plans to sign up about 10 RSLs including two in the Midlands, two or three in London, one for the Kent, Surrey and Sussex area, and another for East Anglia.

Rosser said the trust was not interested in bidding for development grant.