Merger of Housing Corporation and English Partnerships is on the cards as government launches review of its delivery bodies.
The government has announced a review of its housing and regeneration delivery bodies as part of a wider programme to deliver better sustainable communities.
The government will examine a merger of the Housing Corporation and English Partnerships, as predicted in Building, as part of the review.
The Review of Housing and Regeneration has been called for by deputy prime minister John Prescott and local government and communities minister David Miliband. The closing date for responses is 19 May and decisions will be announced during the summer.
One housing and regeneration expert said this short time-frame implied that the ODPM had a set idea of which direction to head in. He said: "It's pretty short and sharp - suggesting that they are fairly advanced in their thinking."
A merger between the two organisations was widely considered three years ago, but has become more likely in recent months following moves by the Audit Commission to reform regulation of public services.
Both Housing Corporation chairman Peter Dixon and English Partnerships chairman Margaret Ford said they welcomed the review.
Miliband insisted that the review would consider a wider range of issues than just the future of the Housing Corporation and English Partnerships.
He said: "This Review is about much more than just the Housing Corporation and English Partnerships. It is about looking at how we can make more of the resources at our disposal and how we can bring innovative solutions to the challenges we face."