Springfield Properties to build more affordable homes

UK homes

In an update, the London-listed company said it would be working with the Wheatley Group to complete the homes

One of Scotland’s biggest house builders, Springfield Properties, has won a £6.3 million contract to construct more affordable housing in the country.

In an update this morning, the London-listed company said it would be working with the Wheatley Group to complete the homes.

The news comes after it signed £24 million worth of  new affordable housing contracts.

Springfield Properties Chief Executive Officer Innes Smith said: This new contract marks another great step for us in affordable housing, building on the excellent momentum with multiple recent contract wins and is a good way to end our current financial year in this area of the business.

We are excited to once again be working with the Wheatley Group, a long-term partner of Springfield, to deliver these vitally important affordable homes, he said.

With our strong, established relationships with affordable housing providers across Scotland and a large high-quality land bank, we look forward to updating the market on further progress in this area in due course, he said.

In February the company said its revenue dropped by 25% to £121 million in the six months to the end of November 2023.

Revenue on solely private developments was 26% lower to £87 million, while operating profit was down 37% to £4.8 million.

Board members told the market this morning that private housing demand was “impacted by high-interest rates, mortgage affordability and reduced homebuyer confidence.”

Fellow listed housebuilder Vistry said last year it would cut 200 jobs back in October and also focus on affordable housing after a volatile housing market reduced buyer demand.

Thanks to the revised business model, the housebuilder said pre-tax profits for 2023 were ahead of its previous guidance and in line with last year at £418 million.

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