A new report suggests that housing associations’ development programmes could be ravaged by a slowdown in the UK housing market.

The study by Savills looked at fluctuations in the housing market and how these could ultimately hit housing associations’ ambitions to build more homes.

Highlighting falls in housing transactions and prices in key markets such as London and the South-east, Savills said that under its most severe test scenario of a reduction in funds, future capacity for a housing association looking to build 5,600 homes over a 10-year period could be slashed by 3,392 homes, or 61%.