Affordable housing project values fall

Analysis by KPMG shows the government’s total construction pipeline has fallen in value from £127.8bn to £118.7bn since December 2014.

Its analysis shows the value of future affordable housing projects has fallen by £2.8bn between the two projections.

This is likely because schemes have completed, and nothing has yet come forward to take their place, an analyst at the accountancy firm said.

Housing associations and councils have put construction on hold as they evaluate the impact of changes in the summer Budget – such as the rent cut and Right to Buy.

Jan Crosby, a director in KPMG’s building and construction division, said: “It’s always difficult to say what is behind big macro numbers, but it’s not really a surprise, considering housing associations have been taking time out to take stock since the summer budget.”

The firm also called for more to be done to improve the consistency and accuracy of the government’s pipeline estimates.

The construction pipeline gives an estimated total value for the construction projects due to take place in the UK.