TWO housing organisations are to form a working partnership.

Social landlords Erimus Housing and the Tees Valley Housing Group, both based in Middlesbrough, have put forward plans to form a group structure to improve services for residents and expand their businesses.

The Northern Echo exclusively revealed earlier this month the two groups were to forge closer working links, stopping short of an actual merger.

Under the proposals, Erimus Housing and Tees Valley Housing Group would remain separate organisations, with their own housing, but would be overseen by a new parent company.

This aims to bring together the groups' expertise, sharing resources and costs and, the partners say, improve services for their tenants.

The move will not affect Erimus Housing's current £105m improvement programme to bring all its homes up to modern standards by 2010.

The boards of both organisations have set up a joint steering group to take part in further detailed discussions about forming the structure and the parent company.

Bernard Williams, chief executive of Erimus Housing, said: "Erimus Housing is now in its third year and we have fulfilled the majority of our promises to tenants. We are now looking at growth and diversification, and the board agrees that the formation of a group structure is the best platform for growth.''

Erimus Housing owns about 11,000 homes and Tees Valley Housing Group about 4,000 properties.

Alison Thain, chief executive of Tees Valley Housing Group, said: "Both Tees Valley Housing Group and Erimus Housing are committed to ensuring there will be no compulsory redundancies coming out of this partnership. This is a win-win partnership for both organisations, as well as our residents."