For a comprehensive look at council mergers, don’t miss our informative whitepaper, Council mergers and devolution: Embracing change – a must-read for public sector professionals.
With the release of the English Devolution White Paper in December 2024, the government has outlined plans to restructure remaining two-tier local authorities into single-tier unitary authorities across England. This shift aims to improve efficiency, enhance capacity, and bolster financial resilience at a local level.
For housing associations, these changes bring both exciting opportunities and notable challenges. Below, we explore how council mergers might shape the landscape for housing associations and other social housing providers.
Simplified governance
One of the key benefits of restructuring councils into unitary authorities is the simplification of governance. With decision-making consolidated into a single-tier system, housing associations should find it easier to work with local councils. Instead of navigating through complex, multi-tier governance, these streamlined structures will reduce administrative hurdles and improve the speed of decision-making.
For housing associations, this means more efficient communication pathways and, potentially, quicker responses to housing proposals and issues.
Increased collaboration
Council mergers will likely necessitate adjustments in partnerships and collaborations. Housing associations will need to align with larger, combined authorities, which may have different priorities, strategies, and approaches to social housing.
While this may initially require organisations to adapt their modes of operation, these partnerships could foster more impactful collaborations. A united local authority could bring together resources, expertise, and networks to tackle housing challenges on a significantly larger scale.
Funding potential
With larger unitary councils often having greater access to funding streams, housing associations may find themselves in a stronger position to secure financial support for social housing initiatives. These unified councils will be well positioned to attract additional investment from government and external sources, particularly for projects that align with broader national goals, including the government’s plans to build 1.5m new homes within 5 years, and boost retrofit opportunities.
This additional funding should enable housing associations to develop new projects, and expand and enhance their services, ultimately benefiting tenants. These benefits could include improved tenant communication through AI-driven tools including chatbots with ‘always on’ capabilities, and improved first-time fix rates using the latest dynamic resource scheduling systems.
Economies of scale
Council mergers aim to create efficiencies by reducing duplication and harnessing economies of scale. These cost savings should present opportunities for housing associations, allowing local authorities to reinvest into community projects, including affordable housing initiatives.
Streamlined procurement processes and shared resources will result in better support for housing associations, enabling them to deliver more cost-effective services to their tenants. Technology has a key role to play, with single, centralised systems able to deliver high levels of data accuracy and integration.
Enhanced public services
The restructuring of councils into unitary authorities is aimed at improving resilience and capability in public service delivery. This should positively impact housing association tenants, ensuring that essential services such as repairs and maintenance, void reduction, and public safety are delivered more efficiently.
This should mean quicker resolution times for issues and complaints, and overall improved quality of services, contributing to higher satisfaction levels.
Resident engagement
Unitary structures are designed with stronger community engagement in mind. For housing associations, this presents an opportunity to better understand the needs of their tenants. Local authorities will be better equipped to gather and act on feedback, fostering a closer connection between housing providers and the communities they serve.
This enhanced engagement will empower housing associations to design services and programmes that directly address tenant priorities, ensuring inclusivity and responsiveness in housing provision. Digital systems have a key role to play; accessibility and the user experience should be at the forefront of any tenant-focused solution.
What challenges lie ahead?
While council mergers bring with them exciting possibilities, they also demand careful navigation to address potential challenges. Housing associations will need to manage changes in partnerships as council structures evolve. New political and organisational dynamics within larger unitary councils may also mean recalibrating strategies to align with changed local priorities.
Additionally, transitions often bring temporary periods of disruption. Housing associations should prepare for potential delays or uncertainties during the initial rollout of merged councils. Effective communication with all stakeholders will be key to minimising these challenges.
These challenges can be mitigated through the clear identification of risk – implementing digital solutions that streamline both meetings and board management and risk management will help bring clarity to decision making amid uncertainty.
Adapting to the new landscape
For housing associations, council mergers represent a pivotal moment. These changes open up opportunities to improve collaboration, secure funding, and deliver higher-quality services. However, maximising these benefits requires proactive planning and adaptability.
Whether it’s reviewing governance processes, building relationships with newly merged councils, or engaging residents on a deeper level, housing associations that act strategically will be best placed to thrive in this evolving landscape.
The road ahead
The move towards unitary authorities signals the start of a new chapter in local governance and housing provision. By addressing challenges head-on and capitalising on opportunities, housing associations can play a critical role in shaping resilient, inclusive communities for the future.
To learn more about the government’s plans for mergers and devolution in England, don’t miss our informative whitepaper Council mergers and devolution: Embracing change – download for free today.
