Housebuilder signs contract with Scottish property group Wheatley
Springfield Properties has continued its return to affordable housing with a new contract worth £6.3m.
The deal will see the housebuilder deliver affordable homes for the Wheatley Group, a housing, care and property management group in Scotland.
Construction will begin immediately and is expected to complete by October 2025, with the majority of the revenue to be recognised in the group’s next financial year.
“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,” said Innes Smith, chief executive of Springfield.
Springfield paused the signing of new affordable housing contracts in September 2022 and issued a profit warning later that year, but returned to the market last September on the back of easing cost inflation and an increase in subsidy from the Scottish government.
Earlier this year it signed a £15.3m contract with social enterprise development company Highland Housing Alliance for the delivery of affordable housing.
“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,” Smith added.
“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.”
A trading update in February showed income and profit at Springfield had dropped in the six months to November 2023, owing to ongoing challenges in the housing market.
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