Liverpool Housing Association, Cobalt Housing, is on a path to demerge to a stand-alone registered provider from October 2017.
The Cobalt Board believes this will ensure effective local investment and a positive future for all tenants and the people of North East Liverpool.
About Cobalt Housing
Cobalt Housing is a Registered Housing Association and was formed in February 2003 following a stock transfer from Liverpool City Council. Cobalt manage and maintain 6,000 homes in North East Liverpool (Fazakerley, Croxteth and Norris Green) and aim to tackle the social, economic and environmental challenges of our communities and be a key player in delivering successful neighbourhood regeneration.
Cobalt is a stock transfer organisation formed in 2003 as a subsidiary of Liverpool Housing Trust (renamed Vicinity Housing Group in 2006). In 2011 Vicinity merged with the Contour Housing Group and Cobalt became a subsidiary of the newly created Symphony Housing Group (Symphony).
Why has Cobalt chosen demerger?
Cobalt Board believes it is in the best interest of its tenants to maintain a total focus on the 6,000 homes it owns in the Fazakerley, Croxteth and Norris Green areas of Liverpool. They will be leaving the Symphony Housing Group who work across the North West in 29 Local Authorities with some 41,000 homes in management.
Symphony currently operates a federated group structure. Symphony seeks to simplify their management arrangements and operate as one organisation. Cobalt’s board reviewed the proposals put forward and were concerned that the model did not fit with Cobalt’s primary objectives or its mission to focus solely on the communities of Fazakerley, Croxteth and Norris Green and provide great quality housing and services in vibrant communities.
Cobalt’s board appointed external consultant’s to explore the possibility of a de-merger from the group. Their role was to assess whether Cobalt could proceed with independence, their assessment focussed on Governance, Risk Assurance, Financial Viability, Competence, Performance and other regulatory expectations.
Following this comprehensive “fitness for independence review” the clear message from all involved was that Cobalt are a financially strong and well managed organisation who could operate successfully as a stand-alone organisation.
Given the positive outcome of the independent review it was agreed to engage with funders and tenants. Discussions with Santander were very positive and they were happy to make an indicative offer regarding future funding. The consultation with tenants, which was crucial to the demerger decision, conducted over a two month period and was extensive. The outcome of this test of opinion was that nearly 2,800 responses were received of which 97% of those expressing an opinion supported Cobalt’s independence.
Peter Mitchell, Chair of the Cobalt Board, said, “Having been brought up in a Cobalt home this has always been about our tenants and local service delivery, the board needed to make sure that we not only had their support to demerge, but that by doing so would put Cobalt in a stronger position to deliver lasting and sustainable regeneration”.
He went on to say that “this isn’t our hearts ruling our heads, it is the right thing to do, to safeguard the improvements Cobalt have made over the last 14 years, we are a well-managed and financially strong organisation that will be even more effective and efficient as a stand-alone organisation with a 100% local focus.”
Where next on the Cobalt demerger journey
Now that agreement has been reached with Symphony, Cobalt plan further extensive engagement to develop their service offer and the partnership working that is vital to achieving their desire to improve people’s lives to provide affordable, high quality homes and services in thriving communities. Cobalt will work with the regulator to ensure compliance, health & safety and achieving value for money are at the centre of how Cobalt operates in the future. Cobalt will achieve continuous improvement and financial stability that is required to deliver lasting and successful physical, economic and social regeneration.
Alan Rogers, Managing Director of Cobalt, said: “this presents a tremendous opportunity for Cobalt to properly and effectively engage with our tenants to make sure we deliver the highest quality services achieving the best value for money possible”
Cobalt will shortly advertise for additional Board Members to boost challenge and skills for its new future and will be advertising for staff to deliver new services.