A housing association currently under investigation by the Regulator of Social Housing is consulting with residents about plans to join the Hyde Group.

Arhag Housing Association, which provides just under 1,000 homes across London, with the majority located in the boroughs of Newham, Tower Hamlets and Haringey, says the proposed move will provide financial stability and service improvements.

Formed in 1979 as a response to the housing needs of refugees from Africa, Arhag is currently on the regulator’s ‘gradings under review list’ as it investigates matters “which may indicate serious failings in the landlord delivering the outcomes of the Governance and Financial Viability Standard”.

According to Arhag, the proposal to become a subsidiary of Hyde would see its residents benefit from a landlord that is:

• more financially robust, with greater capacity to invest in existing homes
• able to deliver better repairs and maintenance through combined expertise
• focused on improving customer service, including faster response times
• committed to a strong local presence in neighbourhoods
• expanding resident involvement, influence and feedback mechanisms
• and better able to deliver new homes in areas of high need.

Before any decisions are made, residents are being consulted from 6 January until 13 February.

Anne McLoughlin, Interim Chief Executive Officer at Arhag, said: “This proposal provides Arhag with stability and the opportunity to continue delivering our shared vision of a great home for everyone. Hyde works in or near to many of the neighbourhoods where we provide homes, and its commitment and track record of being a local and responsive housing provider mean it’s a great combination.

“We want to hear from our residents about the proposals and no final decisions have been made. The consultation is now open, and we’ll be engaging with customers closely over the next six weeks.”

Andy Hulme, Group Chief Executive at the Hyde Group, added: “We’ve always respected and admired the work that Arhag delivers to London communities. Our organisations share missions to improve the lives and opportunities of the customers we serve.

“We think by welcoming Arhag and its customers into the group, we can improve homes and services and will maintain the strong local presence in neighbourhoods that customers want.”

If approved, Arhag would not join Hyde until 1 April at the earliest. Within six months, it is expected that Arhag would transfer its activities to the Hyde Group.