A Scottish co-op could take over the troubled Clay’s Lane Cooperative in London. Such a deal would make Tenants First Housing Co-op the first Scottish housing organisation to take over one based in England.

The plan would unite the UK’s two largest fully mutual co-ops. Local management would be delegated to Clay’s Lane. The Housing Corporation is studying the legal and technical ramifications.

Clay’s Lane has been under sanctions since last year, when a Housing Corporation statutory inquiry found serious governance problems.