The decision follows several months of talks, as announced in June.
An application to the Homes & Communities Association will be made in January and, if approved, the new organisation will become effective from next spring.
The move would create one of the UK’s largest housing associations with a strong presence concentrated over three divisions:
- East and Yorkshire Division managing 6,500 homes
- South Division managing 10,950 homes
- West Midlands and Lancashire Division managing 8,500 homes
The new Group would have more than 25,000 homes and have increased buying power over suppliers and contractors.
Jephson chair Michael Collins said: “Bringing our two organisations together will have a disproportionately positive impact over and above what either of us may hope to achieve alone. We believe this deal will secure a whole range of benefits for residents as well as strengthening our organisational future.”
Full implementation and integration is expected to take three or four years.