The design and build phase of the contract is due to commence in the coming weeks and will be delivered over a period of approximately 18 months, with the Group receiving payment on a monthly basis.

In its interim results for the six months ended 30 November 2022, the housebuilder took the strategic decision to temporarily halt entering new long-term affordable housing contracts after it deemed the fixed-price nature of the contracts to be “more exposed to inflationary pressures”.

As noted in its FY 2023 results announcement, the group recommenced engaging with affordable housing providers following an increase in the Scottish Government’s affordable housing investment benchmarks in June, which it said has made affordable housing projects “more attractive”.

Springfield said it has “an excellent track record” of affordable housing delivery spanning over two decades, having established relationships with housing associations, local authorities and other public bodies throughout Scotland. 

The group is “well-placed to benefit from a return in this market, which is supported by strong fundamentals, including a Scottish Government target to deliver 110,000 new affordable homes by 2032”, it added.

Innes Smith, CEO of Springfield, said: “We are pleased to have been awarded this affordable housing contract by The Highland Council, a long-standing partner of the group.

“We continue to be encouraged by the interest we are receiving from local housing authorities and other affordable housing providers as they seek to meet the Scottish Government’s targets and help meet recognised housing needs across the country.

“Since 31 May, we have signed affordable housing contracts totalling c.£24m and we expect to be awarded further contracts in the near term.”