Springfield Properties wins contract from Highland Housing Alliance for affordable housing

Springfield Properties plc (AIM: SPR), a premier housebuilder focused on both private and affordable housing in Scotland, has announced a significant contract win valued at £15.3 million with Highland Housing Alliance (HHA). This new partnership underscores Springfield Properties’ commitment to addressing the increasing demand for affordable housing in Scotland, particularly in the highlands region. The contract is a combination of an initial bulk sale worth £4.1 million, set to complete within the current financial year, followed by a design and build phase valued at £11.2 million. The latter is expected to start in the coming weeks, with the majority of its revenue anticipated to be recognized in the next financial year.

Innes Smith, CEO of Springfield Properties, expressed enthusiasm about the company’s reengagement with affordable housing providers and the substantial interest it has sparked. Over the past eight months, Springfield Properties has signed contracts close to £40 million with local housing authorities and other affordable housing entities. This particular contract with HHA not only boosts the company’s overall sales rates but also aligns with its strategic focus on cash generation.

These developments are timely, given the Scottish Government’s ambitious targets for affordable housing and the anticipated surge in demand in the highlands. The Inverness and Cromarty Firth Green Freeport initiative is expected to create 10,000 new jobs, further intensifying the need for housing. Springfield Properties, with its strong landholdings across the highlands, is well-positioned to play a significant role in meeting this demand.

The partnership with HHA is a pivotal move towards fulfilling the urgent need for affordable homes in the region. Springfield Properties looks forward to contributing to the Scottish Government’s affordable housing goals and supporting the economic growth anticipated from the Green Freeport’s development. This collaboration marks a critical step in providing much-needed housing solutions and underscores Springfield Properties’ role as a key player in Scotland’s housing sector.