Peabody Trust and Family Mosaic have become the latest housing associations to announce merger plans.
The merger will see a new group formed called Peabody with more than 55,000 homes across London and the south east and have £6bn in assets.
The news comes just a week after Circle Housing Group and Affinity Sutton announced plans to form Clarion Housing Group which will be England’s largest housing association and one of the country’s biggest house builders.
The boards of Peabody and Family Mosaic both believe that a merger would enable the larger group to access better resources and build more homes.
In a joint statement about the merger, Lord Kerslake, chair of Peabody, and Ian Peters, chair of Family Mosaic, said: “The new group would build on the track record, capabilities and shared values of Peabody and Family Mosaic to create a truly distinctive organisation.
“Our combined scale and London focus would enable us to do more together than we could achieve alone.”
They added the new housing association would also “build many more well-designed homes and maintain our commitment to providing low cost housing that is genuinely affordable for those on lower pay”.
The formal merger is expected to complete around July 2017.
Earlier this week housing associations L&Q and East Thames also completed their own merger and a £2.6bn refinancing deal to help fuel expansion.
