Two major housing associations in the south of England are in merger talks to become a 56,000-home landlord.

Inside Housing reported:

Sovereign and Spectrum Housing Group today said they were considering the move would create “the largest housing provider in the south and South West”. Berkshire-based Sovereign owns and manages 38,000 homes. Spectrum Housing Group owns and manages 18,000 homes and manages 45,000 through its maintenance company, Spectrum Property Care.

The statement said the landlords had been exploring the merger since last year, after talks about stock swaps.

If both boards approve the move, the merger will take place by the end of the year.”

Meanwhile:

“Two of the largest landlords in the South East have agreed to take their merger talks to the next stage following board meetings last week.

The boards of Genesis and Thames Valley have both accepted the initial business case for the proposed merger and will now move to considering the last of the due diligence and how to integrate the two organisations.

Were the merger to go ahead it would create a 47,000-home landlord with a turnover of more than £370m, based on last year’s accounts for both organisations.

The next stage will involve appointing the shadow board and designate executive team, and producing a final business plan for approval before a final decision is made.”