THE proposed link up of the town's housing association with a similar organisation has been given the green light.

Spa Housing Association, in Queen Street, could merge with Elgar Housing Association, as members of a newly formed group.

Each organisation would retain its separate identity and, if all goes to plan, the new body will be launched in April 2002.

Spa housing chief executive Guy Weston said: "Our initial research suggests the two organisations are relatively alike and yet complementary.

"We have similar cultures and a common view of the future."

The Spa Housing Group, through Spa Housing Association, owns and manages around 2,700 homes in Droitwich and other districts in Worcestershire and employs 150 staff.

Elgar Housing Association is based in Malvern, with more than 5,000 properties under its wing.