New deal hopes for housing association

Bosses discover serious failures with Paisley landlord

Paisley-based housing bosses are in takeover talks with a trouble-strewn social landlord.

Hanover Housing Association has been approached by Arklet Housing in merger proposals.

The Scottish Housing Regulator stepped in and appointed a new boss and three board members at Arklet after serious failures were discovered.

The probe found weaknesses in relation to procurement, contract management and the payment of inappropriate benefits.

Further checks uncovered more serious problems including a persistent failure to comply with its own constitution, poor handling of conflicts of interest and recording and submitting false information.

The regulator used its statutory powers to “address serious weaknesses” and urged Arklet to seek partnership with a suitable new housing association.

Now Hanover, which manages properties at Foxbar, Ferguslie, Glenburn, the West End, and Gallowhill as well as across Renfrewshire and Scotland, is set to seal the new partnership.

Mike Martin, chair of Hanover Scotland, said: “I am excited at the prospect of Hanover Scotland and Arklet working in partnership and feel there will be positive benefits for residents and staff of both organisations.

“We are at the very beginning of this process but discussions to date have shown that the organisations share common aspirations and I am confident that together we can improve and grow.

“There is a lot of detailed work and due diligence to be done to ensure any partnership that does emerge is robust and sustainable.”

Arklet and Hanover will now begin the formal process of negotiation and due diligence with all partnership options being fully considered in detail before agreement is reached.

Bosses added residents of both associations will be kept advised throughout, and their best interests will be firmly placed at the heart of any decision-making.

Iain Wallace, chair of Arklet Housing Association, added: “We are delighted that we have now entered formal discussions with Hanover Scotland regarding a possible partnership which will improve the range and value of services for our tenants.

“We are particularly grateful to the members of our Tenants’ Forum who have participated in the selection process and have represented the feelings of their fellow residents in a highly effective and constructive manner.”

The Scottish Housing Regulator said it has continued the appointment of the manager and governing body members at Arklet until the end of December this year.

The watchdog said: “Arklet still requires the expert support of the statutory manager and the appointees to help it to develop the business case for the partnership, implement the partnership proposals and deliver the necessary improvements.”