A trio of London-based housing associations are set to merge, creating one of the four largest housebuilders in the UK and providing more construction jobs.
L&Q, The Hyde Group and East Thames have been in talks over joining forces, with the group acting as a social landlords to 135,000 homes and constructing 100,000 new dwellings in the next decade – 35,000 more than their combined total if they acted separately.
Half the new homes will be classed as affordable and the rest sold or let out at market rates.
Chief executive of the Hyde Group Elaine Bailey said: “Put simply, we are stronger together, more financially capable of delivering and managing our stock than we are apart.”
The trio believe they can save over £50 million a year within five years through combined back-office functions, with the savings being ploughed back into more investment in new homes.
Housing minister Brandon Lewis welcomed the move, commenting: “This shows what can be achieved by combining the strengths of each organisation.”