FOR the sake of its own future, Winchester Housing Group is set to merge with a larger organisation.

It is joining the A2 Housing Group, which manages over 11,000 homes in the South-East.

With the approval of the WHG board, work has now begun on a business case which will be submitted to the Housing Corporation with the aim of completing the merger by next April.

WHG began talks with A2 last year after concluding that joining a larger group with a greater regional presence would be necessary in order to remain a "sustainable, long-term player in the market".

"Winchester Housing Group, like all housing organisations, has needed to respond to government changes and make plans in order to meet the future needs of all its residents," said Margaret Newbigin, WHG chief executive.

"To ensure that we continue to improve our services and provide new homes for our residents, we have had to seek ways to grow and secure financial strength.

"Winchester Housing Group operates in an area where, because of high land values, the kind of financial presence required in order to prosper can only be found in a group structure," she said.

Subject to shareholder and Housing Corporation approval, WHG will continue to operate as an independent organisation under the A2 Group, ensuring a continued focus on the needs of local residents.

"It is the needs of our residents that have remained the driving factor behind Winchester's decision to merge with a larger group," said Mrs Newbigin.

"By being part of A2 Housing Group, we will be able to offer an increased choice of housing provision from a much-expanded stock and range of tenures over a larger area.

"Furthermore, by being part of a larger, financially-robust group, we will also be in a position to invest more money in the services currently provided to our residents."

Alan Walker, chief executive of A2 Housing, said: "A2 will receive the benefits of a highly-regarded and well-run Hampshire-based organisation while the Winchester Housing Group will be able to develop its organisation with the support of a large parent company and the enhanced central services that this provides."

Winchester Housing Group comprises the Winchester Housing Association, which has nearly 1,000 homes, the majority of which it both owns and manages, and Wykeham Properties Ltd which manages 532 residential units, of which it owns 470.