The drivers and implications of mega-mergers: Evidence from English not-for-profit housing organisations

Heightened economic uncertainty, reduced government expenditure and reliance on capital markets have had a profound impact on not-for-profit housing providers across the globe, forcing them to strategically pursue new business models to ensure their long-term survival. Whilst mergers are not new for the English not-for-profit housing sector, a number of mega-mergers have materialised among the largest housing associations, with these newly formed organisations predicted to become amongst the largest volume housing builders in England and largest housing associations in Europe. Drawing on business literature, this paper examines the policy and business drivers, alongside managers' motivations and strategic choices that have culminated towards this mega-merger activity. These processes are highly significant for contemporary housing policy, with the dominance of large-scale organisations marking a complete reversal from a position where not-for-profit housing providers used to be valued as small-scale, locally based community organisations. Whilst empirically this article focuses on English housing associations, the underlying drivers and strategic behaviours have considerable resonance elsewhere, as not-for-profit housing organisations across the globe face pressures to transform.