SDR TRANSFER OF ENGAGEMENTS – QUESTIONS & ANSWERS

Why is South Devon Rural proposing a complete transfer to Places for People?

It was always our intention to progress towards a full Transfer within Places for People Group around six months after we became a subsidiary on 20 March 2024. Towards the end of 2023, the SDR Board made a decision to seek a merger partner due to the unique financial position facing the housing sector at the time – including the rate of inflation, interest rates and energy costs. We considered a number of potential partners before settling on Places for People as being the best match in terms of culture and aspirations.

After involving our customers in a seven-week consultation on our proposal, we took the first step on 20 March 2024, having gained the approval of the Financial Conduct Authority (FCA) and the Regulator of Social Housing (RSH). Since then, we have been working closely with teams from Places for People to gradually integrate our operations, with a view to formalising the partnership in the Autumn of 2024 via a process called Transfer of Engagements.

What is a Transfer of Engagements and how will it make a difference?

A Transfer of Engagements is a type of merger and allows SDR to transfer all of its assets, such as homes and offices, to Places for People Group, as well as any liabilities. Being part of Places for People will give us access to the resources to protect our sustainability and to not only maintain but improve the services we offer our existing customers. The partnership will also enable us to press ahead with our aim of playing a part in expanding the availability of affordable housing in South Devon and the wider South West region.

Places for People’s management team are in favour of formalising our partnership and the Regulator of Social Housing has been informed. Subject to a further consultation with our customers, both Boards are expected to look favourably on a formal Transfer of Engagements later this year. For that to go ahead, shareholders need to agree, and they will be asked to consider this in August 2024.

Will SDR’s current services be continued?

Alongside your local, knowledgeable housing staff, you will have access to a 24/7 telephone service, and a dedicated complaints handling team. Greater tenancy support services will also be available, including financial advice, employment assistance, and wellbeing initiatives.

Will there be any changes to my tenancy/lease or to my rights?

There will be no change to your tenancy agreement/lease, or to your rights. The only difference will be that the name of your landlord/freeholder will change to Places for People Living+ Limited. You won’t need to sign a new tenancy agreement/lease. Whether you are a tenant, shared owner, or leaseholder, you will have the same rights and protection that you have now.

Will my rent and service charges go up?

Rents will be reviewed annually and any increase will be in line with Government regulations or what is set out in your tenancy agreement. These rules apply to both SDR and Places for People. Service charges are also reviewed on a yearly basis. Your service charge covers the direct cost of services we provide to your home and/or estate. You will continue to receive a breakdown of these costs with your rent increase notification as you do now.

On the Places for People website it says Places for People Living+ Limited are care and support providers. Why is my home transferring to this landlord if I don’t have care and support needs?

The company that will be your landlord, Places for People Living+ Limited, is part of the social housing arm of Places for People and is a landlord for some customers who have homes with care and support services, as well as general needs customers. Your home will continue to be managed by Places for People Living+ Limited, in the same way as it is now by SDR. Your property will be transferred to this landlord as it is charitable in nature and the benefit of charitable status will enable the group to work more efficiently to deliver more good homes for more customers.

What will happen to SDR staff?

All staff will move seamlessly into the Places for People Group. Everyone has been fully briefed about the transfer and understands the reasons why this is being proposed. SDR staff are already receiving training in some of the systems that Places for People uses to enhance services. As the merger progresses, there will be a gradual integration of SDR functions within the larger organisation – things like Human Resources, Finance and Information Technology for example.

Who will I contact?

Initially all services like repairs reporting, paying rent and service charges or raising issues with our Customer Services Team or Housing Team will continue to be delivered by existing staff from existing offices. The number is 01803 863550.

Will the repairs service stay the same?

Initially there will be little difference. We will continue to oversee repairs and will work with our existing suppliers and contractors where we already have a contract in place. The number is 01803 863550.

Will the offices be kept open?

We will continue to maintain an office presence in the area. Customers will benefit from a continuing local base, backed by central teams.

What are the costs associated with the proposal?

The Transfer of Engagements will inevitably involve initial staff time and external advisors’ costs. However, we are confident these costs will be quickly recovered through the savings that a larger, streamlined organisation can achieve. Customers will bear none of the costs of the consolidation and the savings made in the longer term will mean we are able to improve and add to the services you receive.

How will any extra investment forthcoming from Places for People be used?

The extra financial confidence we will gain from the Transfer of Engagements will allow us to make faster progress with planned improvements to our existing homes. There is also a commitment to build more affordable homes in the South West, benefiting current and future Customers.

Will there be opportunities for customers to get involved with the changes?

Yes. As well as providing a comprehensive range of FAQs for you to read, we are consulting with you on the proposed Transfer of Engagement by way of a five-week consultation process, which ends on 04 August 2024. This involves the questionnaire and opportunities for you to speak to our team face to face or via video link.

The new partnership will also offer longer-term enhancements to the service that SDR’s customers receive. For example, Places for People invite their customers to join their national and local panels. By volunteering to become an involved customer, you will join others from across the country to represent customer views on issues like fire safety, involvement and complaints.

What is the timeline for the transfer?

The SDR and Places for People Boards will be considering the outcomes of the consultation and whether to proceed with the Transfer in August 2024. If both Boards are in favour of the Transfer of Engagements, a final decision rests with shareholders. All being well, the Transfer should happen on or around 1 October 2024.

Are there any disadvantages to the proposal?

The only change that might be perceived as unfortunate is that at some point after our integration the name South Devon Rural will eventually change to Places for People *. But we feel the Transfer is in the interests of residents. The new combined organisation will be better placed to withstand external economic pressures and in time to achieve the benefits we all want to see for our customers and the wider community.

I have more questions – how do I get in touch?

You can use the regular SDR email address to send in any questions or comments, but please use the heading MERGER ENQUIRY at the top of your email. Send it to info@SouthDevonRural.com

* SDR’s history will be maintained as a part of the history of Places for People, which can be accessed online at: www.placesforpeople.co.uk/about-us/who-we-are/our-history-and-heritage/