Swan Housing Association and Orbit Group have opened discussions around a potential merger after the former was deemed non-compliant by the Regulator.

The organisations says it “accepts the Regulator’s findings” and that the organisation has been “working proactively” with the body to tackle the immediate challenges.

In a statement, Swan Housing Association added: “We can confirm that the Board of Swan Housing Association has entered discussions with the Board of Orbit Group, to form a mutually beneficial partnership. Should the partnership go ahead, it is expected that the transaction will be completed late 2022.

“We believe that this geographical fit and complementary cultures will ensure that we can continue our vital work in serving our customers, regenerating local communities and delivering on our local partnership commitments.”

Commenting on the Judgement, Swan’s Chair Pat Billingham said: “We accept the Regulator’s findings. We have been working proactively with the Regulator since it issued a ‘Grading under review’ notice and have in progress a series of actions to deal with the immediate challenges seen within our business plan.

“We remain committed to the communities we serve and will continue to work with the Regulator to address its findings in this judgement.”