Peerless Housing Group has announced plans to merge with the Yorkshire-based housing association Accent Group.

The move, expected to be completed by April 2006, would see Peerless become an operational subsidiary of Accent. Peerless, which already manages more than 3000 homes in Surrey, East Berkshire and Hampshire, will take charge of Accent’s 800 properties in Sussex.

Accent believes its base in Shipley, Yorkshire, is too remote to provide support services to Sussex.

Paul Reeves, group chief executive of Peerless Housing, said: “We felt we should be looking at the benefits of scale from a more formal relationship in terms of efficiency and services to our customers.”

Peerless is one of three registered social landlords that have gone into partnership with the Housing Corporation to form the Respond development consortium, which plans to spend £20m building 600 homes in Surrey and West Sussex by 2006.

Paul Reeves said Accent and Respond could help each other in the South-east: “We are seeking to expand Respond as a developer throughout the South-east. And Accent is looking to extend its affordable housing interests.”