The eight existing arm's-length management organisations have responded to last week's funding allocations to all 13 second-round applicants by outlining plans for a national trade body.
Speculation was also mounting last week that, as his last act as housing and planning minister, Lord Falconer pushed all the applications through – even those that would normally fail the government's strict bidding criteria.

He is rumoured to have done this because of mounting fears surrounding the effectiveness of the transfer programme in meeting the decent homes target by 2010.

The predominantly London-based successful first-round ALMOs have held initial discussions aimed at creating a voice to represent their interests.

The group – which includes Hounslow and Westminster – held a second meeting last week at second-round winner Kensington and Chelsea, to examine the possibility of expanding the trade body to include the other successful bidders.

A further meeting is planned for the upcoming Chartered Institute of Housing conference at Harrogate.

John Townsend, deputy director of housing at Salford and head of the new ALMO, to be established in September, welcomed the proposals.

He said: "It would be useful to share experiences and problems, as well as costs and information about dealing with the government and future changes to the ALMO model."

Eric Bowen, director of housing at Leeds, which won the largest amount of funding at £55.4m, said: "Clearly, it does make sense to talk to your peers. There is a lot of logic and merit in doing this."

Steve Jagger, housing development manager at Barnsley council, hinted that it would jump at the chance to join, saying that the "underpinning philosophy" of the ALMO was that it was to be independent of the council.