The largest ever merger in the social housing sector has moved a step closer after two social landlords’ boards approved a business case for the deal.

Affinity Sutton and Circle Housing agreed to move forward with the process and will now consult with residents and key stakeholders.

The proposed new group will become one of Europe’s largest housing associations with 127,000 properties providing homes for nearly 500,000 people.

The proposed new group would build 5,000 homes annually and 50,000 from the 10 years from 2019, making it one of the largest house builders in England.