Any future agreement will be subject to detailed due diligence and the approval of boards of both organisations.

Sanctuary owns and manages more than 105,000 homes across England and Scotland including social housing, care homes, supported housing and student accommodation.

Swan Housing Association owns and manages circa 11,000 homes and provides a range of services to communities across Essex and East London.

Craig Moule, Sanctuary Group chief executive, said: “As one of the largest housing and care providers in the country we’re focused on ensuring the strength of the sector and that any collaboration opportunities ultimately benefit residents of both organisations. Swan has a good geographic fit with our existing footprint, and we are aligned on social purpose.

“The challenges that the sector faces at the moment are unprecedented – a challenging macro-economic environment, investment in building safety, the need to future-proof our homes and of course, the cost-of-living pressures which are disproportionally affecting the most vulnerable in society. This means housing associations need to think creatively and be open to opportunities.”

Susan Hickey, chief executive of Swan Housing Association, added: “We’re committed to exploring opportunities that will ensure Swan can continue our vital work in serving our customers, regenerating local communities and delivering on our local partnership commitments. As a leading provider of housing and care which already has an established presence in London and Essex, we believe Sanctuary presents an excellent strategic match.”

The announcement comes after Swan’s potential partnership discussions with Orbit Group came to an end.