A better deal for residents
Over the past year, we’ve been looking at ways to improve how we manage our homes and deliver our services, so that we can offer the best deal for our residents – both now and in the future.
Significant building safety investment, high-inflation, a rent cap, and the cost-of-living crisis has had a big impact on the long-term survival of our organisation. We want to do more for our residents, but we know we can’t do it alone.
We're in early conversations with our neighbour, Poplar HARCA, about a potential merger where we would enter into a ‘Transfer of Engagement’ agreement. If approved, this would mean that both organisations come together by THCH transferring all of its assets and homes into Poplar HARCA to create a new 13,000-home locally based housing association.
Our vision
Poplar HARCA shares our vision, values, and commitment to Tower Hamlets. By combining our strengths, resources, and local presence, we can do more for our residents and communities.
We hope that by coming together, we can:
- Create a better housing experience through more investment into homes, services, & neighbourhoods
- Ensure residents have a stronger voice to feedback and influence decisions
- Make it easier to talk to us and access services through digital advancements
- Provide more housing options through development, regeneration and effective partnership working
Poplar HARCA
Poplar HARCA was set up 25 years ago and has been led by the needs and aspirations of its community. It owns and manage over 10,000 homes in east London. By working in partnership, it’s leading a £2.5bn place-shaping programme including new homes, education, healthcare, faith buildings, business, and community spaces.
Resident feedback
Resident views are, and always will be, central to the decisions made by our organisation. In line with the Regulator of Social Housing’s Tenant Involvement & Empowerment Standard, both organisations have conducted a 12-week consultation to provide all residents with an opportunity to express their opinions on the merger.
We’d like to thank those who participated in our formal consultation process. Your input is appreciated and will help to protect the best interests of our community. The feedback will be analysed by our Resident Voice Panel before being presented to our Board for a final decision.
What it means for you
While partnership conversations progress, we remain committed to providing and improving our services to residents. It’s early days, so we do not have all the information to share with you right now. However, we’ve shared what we do know below and will continue to provide updates on this page as exploratory conversations continue.
Why Poplar HARCA?
Our community is at the centre of this partnership and a lot of consideration has gone into finding a suitable partner. As an independent organisation, we’ve completed a comprehensive mapping exercise where our Board and consultants have compared options by looking into the performance, financial viability, and strategic aims of prospective organisations.
Our initial work suggests that Poplar HARCA is able to meet the financial investment required for THCH homes and neighbourhoods and is satisfactory to key stakeholders. To provide further assurance before a final decision is made, we will complete a due diligence process to investigate and verify facts and financial information.
Our Board protects our finances, so will only proceed with the merger if we can show that there are benefits for residents and our financial future is secure.
Both THCH and Poplar HARCA are anchored in Tower Hamlets and want to come together to improve what we do and invest efficiency savings into new and existing homes, services, and neighbourhoods.
Why is THCH not merging with Tower Hamlets Council?
As an independent organisation, we’ve completed a comprehensive mapping exercise where our Board and consultants have compared options by looking into the performance, financial viability, and strategic aims of prospective organisations.
Our initial work suggests that Poplar HARCA is able to meet the financial investment required for THCH homes and neighbourhoods and is satisfactory to key stakeholders.
Tower Hamlets Council has shared a statement on its website to explain that it will not explore ways to take management of THCH homes as it would place its financial position at risk.
As local organisations, both THCH and Poplar HARCA work closely with Tower Hamlets Council, and our priority is to ensure we continue to work together to improve and invest into housing services.
Will my landlord change?
If the merger is approved, THCH will join Poplar HARCA through a ‘Transfer of Engagement’. This means Poplar HARCA would become your landlord. However, there would be no changes to the terms & conditions of your tenancy or leasehold agreement.
Will my tenancy or lease change?
Although you’ll have a new landlord, there would be no changes to the terms & conditions of your tenancy or leasehold agreements.
Will my rent increase if the merger goes ahead?
Social housing rent is regulated by the Government so a merger would not directly affect how much rent residents pay.
How will leaseholders be impacted?
If the merger goes ahead, THCH will join Poplar HARCA through a ‘Transfer of Engagement’. This means Poplar HARCA would become your landlord (freeholder).
Like THCH, Poplar HARCA can only recharge the actual costs of delivering services, which is stated in the lease. These costs must be reasonable.
You can find more information about Poplar HARCA services on its website.
Who will lead the organisation?
Poplar HARCA’s CEO, Steve Stride, will remain in place and THCH’s CEO, Anita Khan, will take the position of Deputy CEO. Poplar HARCA's Chair and Board will remain in place and THCH Board Members can apply for available vacancies.
Will residents have a chance to feedback?
Resident views are, and always will be, central to the decisions made by our organisation. In line with the Regulator of Social Housing’s Tenant Involvement & Empowerment Standard, both organisations have conducted a 12-week consultation to provide all residents with an opportunity to express their opinions on the merger.
We’d like to thank those who participated in our formal consultation process. Your input is appreciated and will help to protect the best interests of our community. The feedback will be analysed by our Resident Voice Panel before being presented to our Board for a final decision.
Why do we not have all the information?
In June, a joint draft business case was approved in principle by both Boards and the Regulator of Social Housing. The case presented the below expected benefits and these will be dependent on the financial viability and stock condition of the merged organisation.
- more investment into homes, services, & neighbourhoods
- a stronger voice for residents to feedback and influence decisions
- easier to talk to us and access services through digital advancements
- more housing options through development, regeneration and effective partnership working
We are in the process of carrying out in-depth due diligence into each organisations finances, risk, governance, stock profile, and liabilities. We’ll only proceed with the merger if we can show that there are benefits for residents and our financial future is secure. There will be a 12-month integration programme which will provide more detailed information and will be shared with residents once all checks have been completed.
We’ll continue to update these FAQs and share information with residents as we progress.
What happens next?
We’re not sure when the merger will happen as both Boards need to consider a lot of information before making a final decision. Our community is at the centre of our decision making and it's very important that we hear your thoughts first. We are also talking to other key stakeholders and THCH colleagues about the proposals.
We’ll continue to keep you updated throughout.
Expected timeline
- June 2023 - 12-week resident consultation opens
- September 2023 – Opportunity for you to provide your feedback closes
- Early December 2023 – THCH and Poplar HARCA’s Boards will make a final decision on the merger, taking due diligence and resident consultation feedback into account. This date has been moved from November to allow more time to thoroughly review and consider all necessary information. We'll let you know the outcome once the decision has been made.