Administrator KPMG has agreed to sell most of Connaught’s social housing group to building firm Morgan Sindall.

The £28m deal for part of Connaught’s social housing group – Connaught Partnerships - is due to save around 2,500 of the group’s 4,400 jobs. The firm’s other 10,000 employees are unaffected by the deal.

Connaught went into administration earlier this week. The 2,500 employees will work in Morgan Sindall’s affordable housing unit, Lovell Partnerships.

Morgan Sindall claimed that the new contracts would add around £200m to its annual revenues.

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