A stock market-listed housebuilder is to buy another developer which focuses on constructing homes for people with disabilities or who cannot live independently.

Edenbridge-based Trafalgar New Homes, which is quoted on the AIM market of the London Stock Exchange, is set to take control of Surrey-headquartered Beaufort Homes.

Trafalgar, which builds under the Coombe Bank Homes brand, will acquire all the shares in Beaufort in exchange for awarding 186.8 million shares in the group to Beaufort's owners.

Chief executive Chris Johnson described the deal as "transformational for the business".

Founded in October 2016, Beaufort has signed a number of agreements for the acquisition of sites across the South East, which would be developed into extra care and assisted living schemes, subject to securing planning permission.

In its announcement to shareholders, Trafalgar said: "The UK population is aging, leading to a growing demand for specialised housing for the elderly, and an increasingly favourable planning environment.

"Beaufort intends to develop units for purchase by owners, who would then receive extra care in their own homes."

Mr Johnson added: "Beaufort Homes has an extensive track record and the acquisition, which brings with it a number of exciting development opportunities, is a logical step given the UK's growing retirement demographic and the increasing demand for assisted living properties."

The proposed acquisition will be discussed at a general meeting of shareholders on March 16.