Sanctuary has announced it is in merger talks with troubled housing association Swan.

A statement from the 105,000-home housing association giant this afternoon said: “Sanctuary has entered into discussions with Swan Housing Association to form a business combination.

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

The statement comes hours after another housing association, Orbit, announced that talks to take over 11,500-home Swan had ceased following “detailed” due diligence.