'I've got deep concerns' - Fears for Walsall staff and tenants rise over huge merger between whg and Staffordshire housing association

A political group leader has expressed ‘deep concern’ about a potential merger between whg and Aspire Housing.

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Whg announced the plans to combine the two organisations and ‘create a new housing association’ last month.

In the press release whg said the reason behind the merger with the North Staffordshire housing association is to build new homes and keep maintaining existing ones.

But Councillor Matt Ward, leader of the labour group, said the scheme shouldn’t be able to go ahead without the approval of the housing minister.

He said: “I was quite surprised that there hadn’t been any correspondence with the council about the merger.

“I’ve got deep concerns about what this will mean for whg tenants and staff in Walsall.

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“We’ve seen mergers in the past where service suffers and tenants suffer as a result. There needs to be some public scrutiny about what this actually means.

“You’ve only got to look at when Accord merged with Green Square. They ended up with multiple ombudsman verdicts against them for failing to keep their tenants in safe and secure accommodation.

“We’ve already seen that whg has stopped maintaining fences. Now tenants will have to pay just to balance the books to make it a bigger organisation.

“Any merger that does go ahead needs to be signed off by the secretary of state, and if it’s not in the residents’ interests, they should be able to veto it.”

Walsall Council transferred all of its housing stock to whg and WATMOS in the early 2000s.

WHG now owns and maintains around 22,000 homes across the West Midlands, and Aspire Housing has more than 9,500 in Staffordshire and Cheshire.

WHG said it is expected that the current chief executive of whg, Gary Fulford, will become the CEO of the combined organisation.

A spokesperson for WHG said: “We announced our proposed merger with Aspire Housing to customers, colleagues and key stakeholders, including Walsall Council, on 6 February.

“Aspire followed the same process including notifying Newcastle-under-Lyme Borough Council, Staffordshire, where it is based. Information about the proposal was published on both organisations’ websites the same day.

“Since forming in 2003, WHG has invested more than £1billion in homes and communities in Walsall, including spending £75m last year on our existing homes. In the last five years we have built more than 2,000 homes, many of which are in Walsall.

“Both ourselves and Aspire are proud to have the top consumer rating of C1 from the regulator of social housing showing our commitment to providing safe, secure homes to our customers.

“We believe this proposed merger will allow us to build on this track record of providing excellent homes, to create a stronger organisation, one that’s able to deliver even more benefits for customers and communities in our Midlands heartlands in Walsall and Staffordshire.

“WHG and Aspire are both independent housing associations and our boards make decisions about the direction of each organisation, including this potential merger.

“We are engaging with our key stakeholders and would welcome the opportunity to attend the council’s scrutiny panel to talk through the benefits this merger will bring to our customers and communities.

“Merging with Aspire to create a larger housing association will enable us to build even more affordable homes for people who need them, whilst continuing to invest in our existing homes.

“Together, we will bring the best of both organisations to strengthen housing services and create new regional growth opportunities.

“We will be able to unlock additional funding for regeneration across Walsall and build on our successful recent developments at Goscote, Lockside and Hollyhedge Lane for example, to create a thriving, inclusive and sustainable borough.

“At the moment this is still just a proposed merger and we will begin a six-week engagement programme with customers later this month. If the merger goes ahead, we will remain dedicated to the success of our people and places, as we have for the last 20 years.”