Both boards carefully considered feedback from residents and have now agreed that Catalyst will join the Peabody Group as a subsidiary on 1 April 2022 subject to required lender consents and Catalyst shareholder approval.

The new organisation will be responsible for 104,000 homes, with c220,000 residents across London, Kent, Sussex and the Home Counties.

Brendan Sarsfield stepped down as Peabody chief executive yesterday, and Ian McDermott’s secondment to the role takes effect from today. Sarah Thomas will lead Catalyst until the merger takes place in the spring. The designate board will be led by Lord Kerslake and the designate executive by Ian McDermott.

Positive discussions with lenders have already begun, and an early priority for both organisations will be to establish new structures to deliver a regional model with more locally based teams.

If approved, the expanded organisation will have a development pipeline of 19,000 new homes on day one.