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Scottish house builder strikes £15m deal amid return to affordable housing
Springfield Properties has agreed a £15m deal with a developer for 75 homes as part of its continuing return to the affordable housing market.
The firm, which is Scotland’s only listed house builder, revealed last summer that it had previously paused affordable housing deals after a drop in revenue.
It came following a profit warning in late 2022.
However in a market update this week, the Moray-based group said it had been “re-engaging” with affordable housing providers and signed £40m of deals in the past eight months.
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It is understood that Springfield has been encouraged by the reduction in inflation and the Scottish government increasing its affordable housing investment benchmark.
Off the back of this, Springfield said it had signed a new £15.3m contract with Inverness-based developer Highland Housing Alliance (HHA). The deal covers 75 new homes, which will be for mid-market rent.
Springfield has agreed £4.1m for a bulk sale of homes, due to complete this financial year.
In addition, the firm will get £11.2m for a design and build contract, with work due to start “in the coming weeks”.
Innes Smith, chief exectuive of Springfield Properties, said: “Since re-engaging with affordable housing providers, we have been greatly encouraged by the interest that we are receiving.”
He added: “Our strong land-holding across the Highlands means we are well placed to assist with housing delivery and we look forward to working with HHA to provide these much-needed homes.”
In a trading update in December, Springfield said it had maintained an approach of “only pursuing new affordable housing contracts that have a 12 to 18-month delivery timeframe, which bring lower pricing risk”.
Last month, fellow Scottish house builder Campion Homes reported an annual loss of £729,000 on turnover of £36.3m.
