GOLDEN Gates Housing Trust (GGHT) has taken a step closer to merging with neighbouring housing trust Helena Partnerships.

The two social registered landlords want to combine their departments to form one large group.

GGHT would still retain its own identity as would Helena as they would be run as two different organisations under the parent group.

And On Monday at an executive board meeting at the Town Hall councillors heard how the merger would benefit GGHT.

Clr David Keane, executive board member for environment, said: "Their proposal is to establish a group structure.

"There has been discussions between the organisations and the local authorities in Warrington and St Helens.

"The two organisations are now proposing to come together in partnership to form a group structure. There are some very good reasons for this. They believe it will create a stronger organisation with greater buying power and to create more affordable homes for residents in both boroughs."

The idea of the two trusts merging came to light in November last year as they started to review combining operations.

If the partnership goes ahead, the new group would own 22,000 homes, employ around 1,000 people and have a joint turnover of £100 million making it one of the largest housing groups in the north west and a key north west regeneration partner.

The potential merger comes after Warrington Borough Council agreed to lend £90 million to Helena as part of a scheme to build 1,400 homes across the region earlier this year.

"Although it isn't strictly our decision we are a stakeholder and have been asked to formally consider this," added Clr Keane. "We wish both organisations the best of luck in future."

The final decision will be made at a special general meeting of the GGHT board on Wednesday, November 26.