It will be one of the largest mergers to date (Who's got together?, left) and is the latest sign that associations are coming under increasing pressure to consolidate stock and management functions.
The unified organisation would control some 11,000 properties across the south of England, principally to the west of London. Only last year's merger of Downland Housing Group with Affinity Homes Group, which created an association with 30,000 properties, was larger.
Airways is seeking final approval from its board at a meeting today but Apex refused to comment on any procedures.
In a joint statement, the two RSLs said: "Airways Housing Group and Apex Housing Group are in exclusive merger talks. Both are exploring the benefits of partnering but more work is needed before any announcements.
"So far, positive discussions have taken place and these talks are continuing."
A source close to the negotiations said the provisional name for the new group is A2. The associations would not say when the merger would happen, or the reasoning behind it.
But the need to reduce costs is forcing more landlords to consider working together. John Carleton, the Housing Corporation's director of investment and regeneration in the North, ruffled feathers earlier this year by suggesting more RSLs merge to take advantage of operating efficiencies (HT 2 April, page 9).
Airways and Apex's merger follows problems with the former's stock management, highlighted in a Housing Corporation "traffic light" assessment in March. It found the RSL's management was below standard, with services "not sufficiently customer focused".
Apex is principally made up of stock from Spelthorne Housing Association, created by the 1996 stock transfer of 3600 homes from Spelthorne council in Surrey.
Source
Housing Today
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