- The Elgin-based company intends to begin building the homes immediately.
- Four weeks ago, Springfield secured a £10m contract from Moray Council
Springfield Properties has signed a new £6.3 million deal with Wheatley Group to offer more affordable homes.
The Elgin-based homebuilder intends to begin building the homes immediately and complete them by October 2025.
Its announcement comes four weeks after the company secured a £10 million deal from Moray Council to build private, affordable housing as part of the Moray Growth Deal, which aims to boost economic growth across the region.
Contract: Scottish housebuilder Springfield Properties has signed a new £6.3m deal
The company also won a £15.3m contract three months ago from the Highland Housing Alliance to meet an expected increase in demand for properties around the green freeports of Inverness and Cromarty Firth.
Innes Smith, Springfield’s chief executive, said the deal with Wheatley “marks another big step for us in affordable housing, building on 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 work with Wheatley Group, a long-term partner of Springfield, to deliver these vitally important affordable homes.
Founded in 1956, Springfield began as an orchard before transforming into housing construction in the early 1990s under the leadership of Alexander ‘Sandy’ Adam.
It grew gradually over the next two decades, finally surpassing £100 million in annual sales in 2017, the same year it went public on London’s AIM junior market.
After trading was severely damaged by Covid-related restrictions, the company’s revenue more than doubled, from £143.5m in 2020 to £332.1m last year.
However, its turnover fell by a quarter to £121.7m in the six months to November, while its pre-tax profits plunged 80 per cent to £1.2m as High interest rates affected the demand for private housing.
The Bank of England raised the UK base rate 14 consecutive times between the end of 2021 and the summer of 2023 to try to reduce inflation, thereby raising mortgage costs and reducing homebuyer confidence.
Analysts largely expect borrowing costs to fall next year as the Bank of England hopes to cut interest rates as the UK’s inflation rate has fallen to just 2.3 percent.
Reporting its half-year results, Springfield noted that private housing booking rates were showing some signs of recovery.
Springfield Properties Stock They rose 2.1 per cent, or 2p, to 96p early on Thursday afternoon and have risen about 11 per cent over the past year.