Springfield signals rebound in affordable homes
Scottish house builder Springfield Properties has signed a £15 million deal for affordable homes months after suspending its activity in the sector as it was losing money on contracts.
The company has returned to the market as cost inflation eases and the Scottish government increases the subsidy for the development of affordable homes.
A £15.3m deal with the Highland Housing Alliance includes an initial bulk sale of housing for £4.1m, followed by a design and build phase which is worth £11.2m and is due to start in the coming weeks.
Tulloch Homes, part of the Springfield Group, will deliver 75 homes for mid-market rent across three developments in Inverness, Kirkhill and Aviemore.
Innes Smith, CEO of Springfield Properties, said: “Since re-engaging with affordable housing providers, we have been greatly encouraged by the interest that we are receiving.
“Within the last eight months, we have signed contracts worth around £40m with local housing authorities and other affordable housing providers.
He added: “As well as contributing towards the Scottish Government’s ambitious affordable housing targets, these homes will help meet the surge in demand for housing in the highlands with the Inverness and Cromarty Firth Green Freeport expected to bring 10,000 new jobs to the area.
“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.”