Buoyant demand outside London and the south east for a mix of market sales, market rents and shared ownership housing could “cushion the fall” of social housing construction activity by housing associations.

In its Spring 2019 review of the industry the Construction Products Association said raising finance remained an issue for housing associations, with the annual 1% cut in social rents combining with lower levels of grant funding, a greater reliance on market-linked housing and concerns around accessing finance from either the European Investment Bank once the UK has left the EU or its domestic replacement.

Housing association start dates were likely to be delayed as the general downturn in the housing market hit prices and consequently the ability of housing groups to subsidise their social and affordable activities with open market sales, the CPA added.