While there has been some hesitancy among affordable housing providers due to uncertainty around public funding, the recent Scottish Budget has allocated £768m to affordable housing supply for 2025/26, which the company expects to drive further growth in this market.
Springfield Properties has also continued to engage with stakeholders regarding the development of the Inverness and Cromarty Firth Green Freeport and new powerlines in the North of Scotland, positioning itself to deliver the necessary housing for these infrastructure projects.
The company's net bank debt has increased slightly due to seasonal working capital requirements, but remains well-managed. Springfield Properties remains confident in meeting market expectations for the full year and will provide further details in its interim results announcement in mid-February 2025.
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Innes Smith, CEO of Springfield Properties, said: "Trading for the first half of the year was in line with our expectations, as homebuyer confidence continued to increase and we progressed delivery of our affordable housing contracts that we won last year. Thanks to the decisive action that we took in FY 2024, we are in a much stronger position and well-placed to address the significant undersupply of housing across all tenures in Scotland.
"We are pleased that the Scottish Government has reconfirmed its commitment to delivering affordable housing, which has been established as one of its top priorities. With last week’s Scottish Budget allocating nearly £800m to be invested in new affordable home supply in 2025/26, this reverses the funding cuts from last year and will give our partners the confidence to progress new contracts in the second half.
"Springfield continues to have one of the largest owned land banks in Scotland, with a high proportion of sites having planning already in place. We have an excellent reputation of offering high quality, energy efficient homes in desirable locations in key housing markets, and a track record of delivering developments exclusively for affordable housing. We also have established relationships with key stakeholders across the housing supply chain and we are particularly excited by the discussions we are having about the provision of housing to support the development of new powerlines and the Inverness and Cromarty Firth Green Freeport in the North of Scotland. As a result, we continue to look to the future with confidence."
