Peabody, the housing association in charge of building thousands of new homes in Thamesmead, has merged with another company.

They are currently undertaking a massive £1billion scheme which will see tower blocks demolished and rebuilt and regeneration of public space.

The formal merger between Peabody and Family Mosaic is expected to be completed around July next year.

In a joint statement, Lord Kerslake, Chairman of Peabody, and Ian Peters, Chairman of Family Mosaic, said: “The new group will build on the track record, capabilities and shared values of Peabody and Family Mosaic to create a truly distinctive organisation.

"Our combined scale and London focus will enable us to do more together than we could achieve alone.

"With a combined turnover of around £618m, we will continue to invest in our 55,000 homes, so that they meet the needs and demands of 21st century families now and for generations to come”.

The new organisation, which will be called Peabody, will have a combined asset base of £6bn and will be led by Brendan Sarsfield, Chief Executive of Family Mosaic.

Stephen Howlett, who has been Chief Executive of Peabody for over 12 years, is retiring.

Teresa Pearce, MP for Erith and Thamesmead commented: "Peabody and Family Mosaic are two of the country’s most prominent housing associations, with a rich history behind them in providing social housing for people in need of a home.

“This merger is welcome news and I hope that together, they will be able to move forward and provide secure and affordable housing for my constituents building on Family Mosaics philosophy of  delivering health, wealth and wellbeing through housing."