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Homes
 

Stock rationalisation

We’ve grown considerably in recent years, through partnerships with other housing associations, developing new homes and acquiring stock.

For us, stock rationalisation – whether we’re acquiring or transferring homes – is about consolidating our presence in certain areas in line with our strategy, to deliver cost efficiencies and a better service to residents.nce 2006, we’ve acquired or transferred around 11,000 homes, and we currently have proposals under consideration to acquire an ongoing pipeline of properties.

In early 2012, we completed one of the largest housing sector stock swaps at that time – 1,400 homes – with Knightstone Housing Association (now LiveWest).

This was followed in 2016 by another stock swap involving a further 1,400 homes with Hyde Housing Association and their development subsidiary Martlet Homes. This allowed us to deliver more efficient local services to residents, while making savings that could be reinvested into our business.

We’ve completed a series of smaller disposals since 2016 - around 500 homes, including 219 older person’s leasehold units to the ELM Group, a specialist registered provider – and the acquisition of 190 homes from Hyde Housing Association.

Over the years, we’ve gained a great deal of knowledge about what works and what doesn’t in stock rationalisation deals. This has helped us create a model which accurately assesses the value of the stock to the business.

We have a dedicated team responsible for all aspects of potential agreements, from making sure due diligence is carried out to communicating with residents.

And the work isn’t done after acquisitions take place - we continue to keep residents engaged so we can understand their needs and carry out repairs and improvements to their properties.

If you’d like to find out more about stock rationalisation at Sovereign, please email our Head of Property Asset Management – Jesse.Meek@sovereign.org.uk


Further information

In 2012 a report was developed to show case some of our stock transfer projects – Stock Exchange [pdf / 5.02MB] – so we could identify good practice and lessons learned. This was published in June 2012, to help other housing associations.

In September 2013 we produced a brochure, Trading Places: Efficiencies through stock rationalisation [pdf / 5.78MB], which explains our approach to stock transfers and the benefits it brings for both purchaser and seller.


We’re keen to talk to other housing providers about our approach to stock rationalisation, or about potential transfers. 

Please contact Jesse Meek.


Email Jesse Meek