Important update Merger talks

Why is Southway looking to merge with Wythenshawe Community Housing Group?

We are a strong and financially stable organisation, but we know challenges facing the housing sector are increasing. We believe we’ll be stronger together, building on what we already do well and keeping costs low for residents and communities. The newly merged organisation would own and manage around 21,000 homes across Greater Manchester and provide services for 40,000+ customers.

Tell me more about the partnership

This would be an equal partnership. By merging, we would create a new organisation with a new name and new shared values. By working together, we can combine resources to benefit customers and communities.

What are the potential advantages and disadvantages to tenants in the immediate and longer term?

From year three onwards, we expect the merger to save around £5.5 million every year by combining the two organisations.

If the merger goes ahead, these savings could help us:

• Invest more in existing homes
• Continue improving services and advice for customers
• Build more affordable homes to meet local housing needs
• Be financially stronger and better able to deal with future challenges
• Make the best use of money and deliver good value for customers
• Invest more in our communities

There will be some upfront costs with bringing the organisations together during the first two years. However, once the merger is complete, we expect the new organisation to operate more efficiently, generating savings (after costs) of £3.5 million in year three and £5.5 million annually from year four onwards.

What does this mean for me as a customer?

Nothing changes for you right now. If the merger happened, it would bring together the strengths and knowledge of two successful local housing associations with greater benefits for customers and communities — including better value for money.

Who decides whether the merger should go ahead?

Both Wythenshawe Community Housing Group and Southway Housing Trust are run by Boards of Directors who are responsible for making decisions on how the organisations and services are run, including whether a merger should happen.

Residents’ feedback is an important part of this decision-making process and would be taken into consideration before any decision on the merger is made.

Both organisations are also following standards and requirements set out by the Regulator of Social Housing in their consultation with residents.

What can residents influence around the merger?

Residents can help shape decisions about the merger and future priorities. We want to hear your views so the merger reflects what matters most and helps us provide the best possible services.

We will carefully review all feedback and consider any new issues raised before making a final decision.

How do customers have a say on the merger?

We're inviting residents to share their views on the proposed merger. From 18 June, residents will receive a letter explaining how to take part in the 10-week consultation. We encourage you to take a few minutes to complete the survey and tell us what you think.

You can find a link to the survey on merger consultation.
 
Your feedback is important and will help shape the future direction and priorities of the new organisation if the merger goes ahead. Your response will be carefully considered before our Boards make a decision later this year.
 
Complete your survey by:

• 13 August – if returning a postal survey
• 27 August – if completing the survey online, in person or by phone

We have also set up a Joint Residents’ Group made up of residents from Wythenshawe Community Housing Group and Southway Housing who we can work closely with as things progress. 
 
Hearing directly from residents is important to both organisations.

Would the new housing association be able to build more homes?

Yes. Over time, with increased resources and funding opportunities, the new housing association would be able to build more affordable homes to help meet growing demand across Greater Manchester.

We have already committed to building 1,300 new homes by 2030, with Wythenshawe Community Housing Group committing to building a further 1,400 and we would hope to increase this over time as one larger organisation.

What about community investment?

If the merger went ahead, we would be able to invest more in communities through better collaboration, skills and resources. Southway’s commitment to invest £5 m in its communities by 2030 would still stand as would Wythenshawe Community Housing Group’s £10m community investment over the next few years. Over time, we’d hope to be able to increase this investment as one larger organisation.

When would a merger happen?

If the merger was approved, it would happen later this year.

Who would lead the new organisation?

John Bowker, Southway Housing Trust’s current Chief Executive, would be Chief Executive of the new organisation if the merger’s approved.

Wythenshawe Community Housing Group’s Chair of the Board, Nick Crofts, would be the Chair of the new organisation if the merger goes ahead.

Both were selected through a robust process.

What would the new organisation be called?

A new name and identity would be developed to reflect the new partnership. This hasn’t been decided yet but would be confirmed around the time the merger happens, if it were to go ahead.

How will you ensure diverse communities including people with disabilities or language barriers are heard?

Equity is an important part of Southway’s culture and we’re proud to live this value by ensuring people have what they need to contribute and thrive. Our customer groups, committees and Board include people from a range of backgrounds and experiences, helping to reflect the communities we serve.

If you need help understanding any of our communication or need it in a different format or language, please contact us on 0161 448 4200. You can also find different formats on our website by clicking on the accessibility icon.

What happens if the merger doesn’t go ahead?

If the merger doesn’t go ahead, Southway Housing Trust will continue to run services as normal.

Would my landlord change?

In order to merge, the current plan is for Southway Housing to transfer its properties and engagements to Wythenshawe Community Housing Group and for the merged organisation to adopt a new name at the same time. So you would have a new landlord with a new name but the conditions of your tenancy or lease would not change as a result and you would have the same rights and protection that you have now.

Can I still access services, report repairs and contact you in the same way?

Yes. There are no proposed changes to your services or how you use them. You would pay your rent, book a repair or contact us in the same way. You can do this by phone, email, in person or online via our website or your online customer account.

Our office at Southern Gate and community centres would continue to stay open too.

There are also no planned changes to how you can make a complaint.

Would my rent increase as a result of the merger?

No. There would be no increase to your rent because of the merger.

Rent increases are made annually in line with Government guidelines and required notice periods for customers.

Would the level of service I receive change?

No, you would continue to receive the same level of service.

Should the merger happen, any changes to services in the future should be felt by customers in a positive way.  The merger is an opportunity to improve services and bring greater investment to our homes and communities.  

Would I have the same housing officer?

You would still speak to the same housing and neighbourhood teams.

What about my right to buy / acquire?

There are no changes that would affect customers’ eligibility for Right to Buy or Right to Acquire their home as a result of the merger.

What does this mean for me as a leaseholder?

This announcement doesn’t change anything right now for you. If the merger went ahead then the newly merged organisation would step into the place of Southway Housing - but the terms of your lease would not change.

Would service charges increase because of the merger?

No. Service charges would not increase because of the merger. Over time, we hope the merger would bring customers better value for money across a range of services.

Are building management arrangements changing?

No. There are no proposed changes to how your building is managed. 

Would my shared ownership agreement change?

No, there is no proposed change to your shared ownership agreement. If the merger went ahead then the newly merged organisation would step into the place of Southway Housing - but the terms of your shared ownership lease would not change.

Would I still have the same staircasing rights?

Yes. Your staircasing rights would not change.

Would the value of my home be affected?

House prices can change for lots of reasons, but these merger discussions are not expected to have a negative impact on the value of your home.