Why we want your feedback 

We want your thoughts on decisions that affect you. We want to be transparent and open about our plans and to know how you feel about them.  
 
This is your opportunity to influence the decision-making process in relation to the merger proposals.  
Our Board will consider all feedback received before deciding whether to not to continue with the merger plans. It’s important that you take the opportunity to respond so that we can makes sure your views are considered.  

Keeping you updated 

We will continue to engage and communicate with you as the proposal develops. This consultation gives you the chance to tell us your initial thoughts on the proposed merger.  

A merger does not mean there’s anything wrong at Bromford 

Both organisations are in good financial health. We both have strong ratings from the Regulator of Social Housing. We are not considering a merger to address failures. This merger would be designed to enable both organisations to do even more together. 

Costs of the merger 

The merger will involve colleague time and external advisor costs, however you would not incur a direct cost as a result of the merger. Any costs associated will be offset by the benefits of the merger (see below). 

Voting on the merger decision 

There will not be a customer vote held for the merger. We will ensure through this consultation that your thoughts and views are taken into consideration by our Board before a final decision is made. You will not be required to sign anything. 

When the merger would happen 

If approved, the new group structure, which would be formed as part of the merger, would likely come into effect in Spring 2025.  

Benefits of merging 

The creation of 'Bromford Flagship' has scope to create additional capacity of more than £1.9bn over the next 15 years. That’s over £100 million which could be invested each year in our business, the services we provide to you, in building new homes, and in ensuring our existing homes are energy efficient, safe and warm.

It would give us the opportunity to become one of the largest developers of affordable homes in the UK. We plan to provide 2,000 homes a year for the next 25 years, half of which will be for social rent, delivering homes for those who need them most.

It would give us the opportunity to become one of the largest developers of affordable homes in the UK. We plan to provide 2,000 homes a year for the next 25 years, half of which will be for social rent, delivering homes for those who need them most. 

Bromford Flagship’s increased capacity would also provide the opportunity to build on the work that we have recently undertaken with the creation of our new Place Standard. The Place Standard means we are looking beyond individual homes. It considers what is needed for our neighbourhoods to be places where people want to live, and where you and your community can thrive.  

Disadvantages of merging 

We have undertaken a process of investigation into one another and haven't identified any disadvantages. We believe the merger, if it goes ahead, would be in your best interests as one of our customers. If the merger goes ahead, a small team of colleagues would work together to integrate our organisations but that would not disrupt the focus on providing services to customers. There will be a short term cost to integration, however this helps unlock the ability to create the £1.9 billion of extra spending which would far exceed any short term costs of integration.  

You may have concerns about us becoming a larger landlord. We want to assure you that the merger would not affect our commitment to local accountability either.  

We would maintain our current teams and how we operate. We would also work towards increasing our effectiveness by giving local teams more decision-making power. This would ensure that customer services are delivered in line with our customers' needs.  

These teams would be supported by the creation of a leading digital service for customers and colleagues. 

Minimising the impact 

The Housing Ombudsman has previously been critical of how other organisations treated customers after the disruption of a merger.  
 
You are at the heart of our decision making. If the merger goes ahead, we’ll still be delivering services as we currently do. We have set out some information about Flagship further below. Bromford and Flagship work in different areas of the country, so you shouldn’t see any immediate change to how you receive services from us, as your landlord. The proposed merger gives us the opportunity to commit £190 million each year to repairs and improvements to your home as well as community growth. 

Regulation 

The new group structure would be regulated by the Regulator of Social Housing. You would continue to have the right to raise complaints to the Housing Ombudsman and be protected by the standards set by the Regulator of Social Housing. 

Why we are considering a merger with Flagship  

Here are some of the key things that make Flagship the right organisation for us to merge with:  

• like us, Flagship has a strong financial position. A merger would mean our combined position is even stronger 

• Flagship has a strong portfolio of affordable homes with only one high rise block 

• Flagship’s purpose focuses on customers and place, just like us, meaning our investment in neighborhood coaching and income advisors would continue 

About Flagship 

Flagship are a housing association with 32,000 homes in the East of England, with their head office in Norwich. They employ over 1,400 colleagues and have a V2/G2* rating from the Regulator of Social Housing.  

*The regulatory ratings for social housing: ‘G’ stands for governance, assessing how well an organisation is managed and run. The ‘V’ assesses the financial stability and sustainability of an organisation. The ratings run from 1 to 4, with 1 being the highest score possible. 

How Flagship’s customers rate them 

On overall satisfaction in relation to Flagship’s low-cost rented customers, Flagship scored an overall satisfaction score of 71.9%. 

You can find out more about Flagship’s Tenant Satisfaction Measures performance on their website https://www.flagship-group.co.uk/about-us/flagship-group-s-tenant-satisfaction-measures/ 

Your rent and service charge 

Your rent and service charge would not change as a direct result of the merger. Your rent and service charge would continue to be reviewed each year in the same way they are now. Where you are a tenant, your current protections over how much your rent can increase by year on year (as set out by the Regulator of Social Housing) would continue.

Your tenancy agreement or lease 
The merger would not affect your relationship with us as a customer. You would remain in your existing home and your landlord would not change as a result of the merger – it would just be part of a wider group structure. We would continue to honour the terms of your existing tenancy agreement, or lease. Your rights and the terms of your current agreement would remain the same. If you’re a shared ownership or leasehold customer, you would not be affected, your landlord would remain the same and the terms of your lease and your rights would also remain the same.  

Repairs and maintenance to your home 

You would continue to contact us in the same way. Delivering quality services would continue to be a priority for us and we only expect you to see improvements in how we respond to repairs.  

The merger would give us the opportunity to commit £190 million every year to repairs, maintenance and improvements to our homes, and towards community growth.   

Shared owners and leaseholders would remain responsible for repairing and maintaining their homes unless there are agreements already in place for us to carry these out.  

Your neighbourhood coach and income advisor 

You would have the same relationships with the same colleagues and there are no plans to change this. All telephone numbers would initially remain the same and you would continue to be able to contact us in the same way.  

As we introduce improvements in the coming years, this may change, but we would make sure you know about any changes in advance.  

If you’re in arrears 

If you owe us money at the time the proposed merger goes ahead (rent arrears, court costs, money for damage or a rechargeable repair), then these debts would stay with you, and we would still be able to enforce existing court judgements for these arrears. If you have concerns about arrears, then please contact 0330 1234 034. 

Housing Benefit and Universal Credit 

Housing Benefit and Universal Credit claims would remain unchanged. Help and advice would continue to be given to customers or leaseholders about benefit entitlement and support for you if you are experiencing financial difficulties.  

The Right to Buy and Right to Acquire 

If you have the Right to Buy or Right to Acquire your home, you will continue to have that right. It would not be impacted by the merger. 

What is the financial position of both organisations?  

Both organisations publish their financial performance on their websites, with Bromford’s latest update being the Annual Report & Accounts to 31 March 2024, and Flagship’s being their unaudited trading statement to 31 March 2024.  

Both organisations are financially strong. Bromford has credit ratings of A2 from Moody’s and A+ from S&P, while Flagship has a rating of A2 from Moody’s.  

Through the financial assessment of the proposed merger, due diligence was done by both sides on the business model and financial position, which did not highlight any significant issues needing to be addressed before the proposed merger taking place.  

The new organisation created by the merger will be financially stronger, with the capacity to invest an additional £1.9 billion, equating to £100 million per annum. This increased investment capability is achievable even before any efficiencies from the merger are realised, underscoring the enhanced financial resilience and growth potential of the combined entity.  

What are the estimated costs of the merger?  

We expect the costs of the merger to include advisors' costs and process and system integration costs. We expect these to be more than offset by financial savings that will be costs of the merger to include advisors' costs and process and system integration costs. We expect these to be more than offset by financial savings that will be achieved. Some of which have been detailed above.  

Who are the external advisors?  

The three main external advisors that have supported the pre-merger work are:  

• Phillip Callan Associates, who are well-regarded advisors in the sector and have advised on the merger,  

• Devonshires, who are a well-known legal firm and have provided advice on legal matters, and  

• Centrus, who are a well-established treasury advisory and have advised on treasury and funding aspects.  

We have also used other specialist advisors where required, for example, ISIO, who are a specialist pensions advisory firm and have provided pensions advice to support the pensions due diligence.  

What are the anticipated ‘short-term costs of integration’?  

The overriding premise is that there will be little change to how the individual organisations operate on day 1.  

The anticipated short-term costs of integration primarily include rebranding, potential systems integration, and alignment of operational processes. These are standard expenses in mergers but are not expected to significantly impact the financial standing of the new organisation. Despite these initial costs, the benefits far outweigh them. The merger will create a financially stronger entity capable of investing an additional £1.9 billion over the next 15 years, equating to £100 million per annum. This investment will be directed towards new homes, existing homes, and frontline services, which are crucial for customers.  

Moreover, the new organisation aims to build over 2,000 new homes annually, with half dedicated to social rent, the most affordable form of housing. This enhanced financial strength and commitment to social responsibility will be realised even before any efficiencies from the merger are removed, underscoring the long-term benefits of the merger.  

Where will the extra £1.9 billion come from? (Is it from government or private funding?)  

The additional funding is realised through increased access to funding which means as a bigger organisation we can secure new money which will enable us to invest in building new homes, improving existing homes and in frontline services. This investment will be greater than what could have been achieved by the 2 organisations alone.  

How can an organisation plan 15 years ahead? 

As a long-term business, we think and act long-term, and our financial planning reflects this. We do long-term planning every year, completing a 30-year business plan, as do all registered Housing Associations, as this is a regulatory requirement.  

What exactly are the supposed ‘financial savings’?  

The two main areas of financial saving both relate to the increased scale of the merged businesses and come from lower funding costs and savings from new-build and existing homes maintenance procurement. 

Will the merger result in enhanced management salaries or bonuses?  

There will be no adjustments to salaries of colleagues as a direct result of the proposed merger.   

Will there be a vote on the merger? 

There will not be a vote on the merger. The Regulator of Social Housing (RSH) oversees mergers to ensure that housing providers like Bromford continue to meet regulatory standards and remain financially viable. This means the RSH will review the merger to ensure it is in the best interests of customers and that Bromford can continue to provide good quality services.  

What is meant by ‘community growth’?   

"Community growth" refers to Bromford's efforts to enhance and develop the communities where their customers live. This includes investments in maintaining and improving existing homes, as well as initiatives that support the social and economic well-being of these communities. It involves projects like neighbourhood coaching, regeneration activities, and a series of Place initiatives aimed at improving the quality of life for customers and fostering a sense of community. Place details are set out in Bromford’s strategy.  

What is the Place Standard? What sort of initiatives are envisaged? What will estates look like in years to come?  

The Place Standard at Bromford refers to the strategy of "place-based working," which focuses on understanding and addressing the unique needs, issues, and strengths of specific communities, rather than applying a one-size-fits-all approach across all areas. This approach means that Bromford’s efforts are tailored to each community's specific context, involving local stakeholders in decision-making processes to better align services and resources with the needs of that place.  

Initiatives Envisaged:  

Localised decision-making: Bromford will empower local teams to make decisions based on the specific needs of their area. This bottom-up approach contrasts with traditional top-down methods, where decisions were made centrally without as much input from the local community.  

Collaborative efforts: Bromford will work closely with local authorities, community groups, and other stakeholders to pool resources and address issues more effectively, leading to potentially better outcomes for the community.  

Neighbourhood coaching: The neighbourhood coaching model will be expanded, with coaches playing a key role in understanding and responding to local issues, building stronger relationships within the community, and helping customers thrive.  

Tailored services: The services provided in each area will be tailored to the local context, which might mean different service offerings in different places, depending on what the community needs and the resources available.  

What estates will look like in the future:  

More community-focused: Estates will be more closely aligned with the needs and aspirations of their residents, with services and resources targeted to support local priorities.  

Sustainable development: There will likely be an emphasis on sustainability, with homes and communal spaces designed or upgraded to be more energy-efficient, incorporating green technologies such as solar panels and heat exchangers where appropriate.  

Enhanced Public Spaces: Investments in public spaces and communal areas will aim to foster stronger community ties and improve the overall quality of life in these areas.  

Diverse service models: Different estates might see varying approaches depending on local needs, some may focus on regenerating existing homes, while others might prioritise new builds or enhancing community services.  

The Place Standard is part of a broader, long-term strategy that will evolve as Bromford learns more from its pilot projects and ongoing community engagement efforts.  

How is local accountability likely to change?   

Regarding "local accountability," the shift towards place-based working at Bromford is likely to lead to significant changes in how accountability is structured and managed within local communities. Our customers have told us they want to be able to assess the quality of local services and have a role in supporting improvements – through our Place initiative we are in the process of developing this enhanced way of working.   

Why can't local teams be given more decision-making power now, and why hasn't this been done already? 

We already have local accountability and decision making in place, this is largely delivered through our Neighbourhood Coaches. What we are talking about here is an evolution of this thinking, so that local accountability isn’t just influenced by hundreds of individual discussions each month but actually links people and communities together so that we strengthen the voice of communities as well as individual customers.    

Our Place initiative includes a number of pilots where we will work with customers and communities to test and develop this thinking further.  

The success of these pilots will provide the confidence and blueprint needed to expand local decision-making power across more areas, ensuring that when it is implemented, it is done so effectively.  

In summary, while the benefits of local decision-making power are clear, Bromford has taken a careful, phased approach to ensure the transition is successful, sustainable, and ultimately beneficial for both customers and the organisation.  

What is the learning Academy and how much is this Academy to cost?  

The Academy aims to empower customers (tenants) with practical skills to enhance their daily lives and community engagement. This includes:  

Employment support: Coaching customers into work or training, with a goal of supporting 1,000 customers by 2027.  

Digital skills: Enhancing digital literacy to help tenants access online services and manage their affairs more efficiently.  

Financial management: Providing tools and knowledge to better manage personal finances.  

The Learning Academy is still in its initial stages, and this includes the process of determining its costs. As such, the specific cost has not yet been finalised.  

Leadership Development includes ongoing professional development to support leaders in their work and personal development.