Sovereign Housing and Network Homes will merge after the plans were approved by their respective boards.
The newly formed Sovereign Network Group will be one of the largest housing associations in the UK following completion on 1 October, with more than 82,000 homes across the south of England and London.
Subject to a formal appointment process, it is expected that Mark Washer, CEO at Sovereign, will become chief executive of the new group, with Network CEO Helen Evans becoming deputy chief executive.
Sovereign chair Paul Massara will take the chair of the combined group, while Network’s interim chair, Jon Gooding, will be deputy chair.
Sovereign Network Group will have an annual income of more than £830m by 2024-2025 and plans to invest £9.2bn over the next 10 years, building 25,000 new homes. The target is almost 4,000 more than the current combined plans of the companies.
They have also pledged to establish a new community foundation to invest £100m in communities over a 10-year period.
Under the proposals, the new organisation will initially take the form of a group structure, with Sovereign being the parent and Network Homes the subsidiary, with a view to full amalgamation happening in April 2025.
Washer said: “Together we can build more homes and invest more in the homes we own. As we merge, we will learn from one other, bringing the best from each organisation. As a housing association with over 80,000 homes and a really strong financial profile we will be able to deliver more for all of our customers.”
Evans added: “This is the right time for this merger, and the right merger for both Network Homes and Sovereign. Together our size and resilience as an organisation will increase our ability to invest and to build new, affordable homes.”
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