Housing associations Peabody and Town and Country Housing Group are planning to merge.
A final decision is due to be made next year. Under the proposals, TCHG would become a separate subsidiary of Peabody.
The pair said the plan would enable them to build 800 new homes across the South East every year, 500 more than TCHG would be able to deliver on its own. The new entity would take Peabody’s new homes target to 3,300 per year from 2021.
Peabody focuses on London and the South East whereas TCHG focuses on Kent and Sussex.
Lord Kerslake, chair of Peabody, and Francis Salway, chair of Town & Country Housing Group, said: “This move brings together two strong organisations to deliver more much-needed homes in the South East.
“We share a strong social purpose to support vulnerable people in housing need. Our combined scale and focus will enable us to do more together than we could achieve alone.”
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