Tower Hamlets Community Housing and Poplar HARCA merger: East London residents demand voice

East London residents who claim to have been hit with rising service charges and poor maintenance are calling for a voice in a potential merger between two major local housing associations.

Last month, Poplar HARCA and Tower Hamlets Community Housing (THCH), which between them provide more than 13,000 homes to people living in east London, announced they were looking to enter into a merger.

According to Poplar HARCA, the proposed move is so the two housing associations can “create a better housing experience for residents and invest efficient savings into new and existing homes, services, and neighbourhoods”.

The landlord said a decision is expected in the autumn, and if approved, the chief executive of Poplar HARCA, Steve Stride, will become chief executive of the new organisation. THCH’s chief executive, Anita Khan, will become deputy.

Tenants of THCH - who say they have been battling rising costs and worsening conditions across several blocks managed by the association - have raised concerns about the impact the merger would have on housing in the area.

Both THCH and Poplar HARCA have recently come under fire for their performance. In March this year, the social regulator downgraded THCH for its governance and financial viability, due to it being “unable to meet the costs of its day-to-day operating activities and repair liabilities”.

Poplar HARCA recently had its baseline credit assessment downgraded by financial services company Moody’s due to issues including “weak operating margins and interest covers”.

‘Diabolical’

Tenants living in one THCH block, Charles Dickens House in Bethnal Green, have been on strike over service charge payments since last May, over drastic hikes to costs and poor housing conditions. The Local Democracy Reporting Service reported at the time that service charges had increased by 116%.

One resident living in the block, Jakia Begum, told LondonWorld her heating has gone from £42 to £88 per week in one year, for a two-bedroom home.

She said the heating is the “main issue” for her currently, but that she is worried her situation will worsen under the proposed merger with Poplar HARCA.

“My concern is, where do we stand?” she said, adding she would like to see THCH brought into council ownership.

Another THCH tenant, who wished to remain anonymous, described her conditions as “diabolical”.

“There’s no repair, they have upped the service charges, and they don’t do basic things,” she said.

“It’s not waterproof, so the water is coming into the roof. It’s a fire hazard, and it’s really cold.”

A protest was held last Thursday (July 13) against the merger, organised by the local campaign group Justice for THCH Residents.

Hussain Ismail, chair of the group, said the protesters are pushing for a voice in any agreement between the two housing associations.

“There’s no repairs, no maintenance, we have to pay for repairs, they don’t come out,” he said of his Shadwell block.

“The estates are abandoned.”

His concern, he said, is that Poplar HARCA is “just a corporate organisation” with its own financial problems, and that if a merger were to go ahead, housing conditions will only get worse.

Reiterating Ms Begum’s desire to see THCH come back under council ownership, he said as long as residents have a voice, he will feel comfortable that those experiencing the issues have been involved.

“If we decide to go there and it feels we have made the decision, we have had a voice,” he said. “But if we don’t have a voice, these are charities that are much more closed-off than the council.”

Back under council ownership?

A motion, due to be presented at full council on July 19 by Labour councillor Marc Francis, will call on the mayor to ask the Regulator for Social Housing to ensure views of residents are formally sought prior to a decision.

It will ask Mr Rahman to instruct council officers to undertake a feasibility study on bringing THCH stock back to the council.

Asked whether the council is considering making a move for THCH, a spokesperson said officers and the mayor, Lutfur Rahman, have met with chief executives at both organisations, and that they emphasised housing services, stock conditions and governance must be improved.

They added the council “will continue to monitor the situation and will remain in close contact with both landlords”.

The housing associations

Asked directly about the concerns raised by THCH residents about the merger, LondonWorld was directed to pages on the the websites of both associations answering questions on what the implications may be.

Poplar HARCA’s says it and THCH are doing “detailed checks” on each other’s finances, and that the board will only decide to proceed if it can “show that the level of service residents receive will continue to be delivered at a good standard”.

On its own service levels, it writes: “We know we don’t always get things right first time, but we do listen to residents and act on what they tell us.”

THCH meanwhile writes: “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.”

Both housing associations are currently seeking feedback from residents, with surveys hosted on each of their websites.