Plans have been scrapped for a three-way merger between housing associations L&Q, The Hyde Group and East Thames.

The organisations announced in April they were exploring the potential for a partnership. However after months of negotiations, Hyde and L&Q have decided to end plans for a merger.

L&Q said it will instead work with East Thames towards a two-way partnership.

In a statement, the HA said: "As financially strong organisations, both L&Q and Hyde remain committed to growth and have ambitious plans to build more homes to help alleviate the housing crisis in London and the South East. However, it has become apparent that there are practical issues which cannot be easily overcome, and we concluded that in the current environment of unparalleled change and opportunity, resolving these issues would require time that we do not have.

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"We will continue to work collaboratively to our mutual benefit and we wish each other the best for the future."

L&Q added it will continue to pursue merger plans with East Thames, which will involve creating 100,000 new homes, a new training academy, a new community foundation, and a care and support subsidiary.

(LM/CD)