Merger talks between three of the largest housing associations in London took place earlier this month. L&Q, Hyde Group and East Thames collectively own and manage approximately 140,000 homes in the capital. The move would create a huge association worth an estimated £30 billion if it goes forward.

The aim of the move is to combine the powers and experience of the three associations to increase the number of new homes that are being built in the capital. It is believed that the merger would allow them to build approximately 100,000 properties in the next decade as a result of their combined purchasing power and resources. This volume of homes would go a long way to satisfying the huge level of demand.

The early plan is to build 50,000 homes for people on lower incomes. This would make the new association the largest provider of affordable housing in England. It would also be a huge step in the right direction in terms of helping people with smaller incomes to get on the property market in the capital. This would coincide with the aims of the Government.

The remaining 50,000 homes would be for sale and rental at the market value. The profits made on these properties would be fed back in to the organisation to fund building even more properties. This strategy could offer long term benefits and help the association to make good steps towards tackling housing shortages.

A merger will allow all three companies to operate more efficiently, build more homes and invest more in supporting local communities. Huge savings ultimately amounting to £50 million a year can be made by combining back office functions. This money can also be invested in new building projects.

If the merger goes forward the new homes will be built across Greater London and the commuter belt to the South East. They would offer fantastic opportunities for buyers, renters and investors alike. Thousands of interested parties will be waiting patiently for additional news about the plans in the coming weeks and months.