Empire building? Analysing the drivers towards mega-mergers in the English housing association sector

Abstract

Fundamental changes to the economic climate, government regulations and investment funding have had a profound impact on the operating environment for English housing associations, forcing them to pursue new business models in order to ensure their long-term survival. Whilst mergers are not new for the sector, a new wave of mega-mergers has materialised, with super-sized housing associations projected to become amongst the largest volume housing builders in the country. Scale, however, does not necessarily guarantee automatic efficiency gains or increased development output. Yet with size comes status and influence, strengthening the ability for organisations to shape their operating environment and take control of their future. Drawing on business theory, this paper examines the way in which wider policy and business drivers alongside managers' motivations and strategic choices have culminated towards this mega-merger activity. The paper suggests that this trend is not only changing organisational forms but also transforming the future direction of the sector.