Preliminary discussions aimed at creating a new trade body for the capital's arm's-length management organisations have taken place.
Existing organisations, second round bidders and councils interested in the expected third round met in London last week.

Gordon Perry, chief executive of Kensington and Chelsea Tenants' Management Organisation, and one of the second round bidders, said: "We are keen to acknowledge that we don't fit with the National Housing Federation and we are no longer local authorities.

"It's about having a trade association that brings the two together."

Perry said he was confident that the summer's comprehensive spending review would see further funding allocated for a third arm's-length management round.

Forming a national association would be a long-term goal.

There are now more than 130,000 properties under arm's-length management, and 13 councils are bidding to join the initial six that were successful in the first round.

Chartered Institute of Housing Policy director John Perry said: "The time has come for them to set up on their own."

But Liz Potter, policy director at the federation, warned it was still "early days" for the organisations.