Proposals would have created 拢374m turnover landlord

Three housing associations have ended merger talks to create a 拢374m turnover landlord, blaming the recent 鈥榗hange in economic circumstances鈥� for the decision to call off negotiations.

BPHA, Flagship and Futures began discussions about coming together to create a 60,000-home housing association operating in the Midlands and East of England this spring.

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The three firms said the worsening economy had scuppered the merger

But yesterday afternoon the three announced the talks had ended, with the trio saying the 鈥渦nprecedented鈥� change in the economic environment has scuppered their plans.

In a joint statement, the chairs of the three organisations said: 鈥淎s three individually strong organisations we set ourselves some ambitious goals for a potential new organisation.

鈥淕iven the change in economic circumstances over the last six months, achieving these aims is no longer feasible and therefore we have agreed to end the talks. Each of the organisations is well placed to continue to serve their customers effectively and now look forward to supporting each other in the normal course of business.鈥�

Norfolk-based Flagship owns or manages 31,500 homes, while BPHA owns 19,000 homes in Bedfordshire while Futures is a 9,000-home association based in Leicestershire. The trio built nearly 1,000 homes last year.

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