Housebuilder Springfield Properties sees 'green shoots' after challenging first half

Bosses said they had taken “decisive action” during and post reporting period across the business to address the market conditions, resulting in expected annualised cost savings of around £3m.

Chief executive Innes Smith told investors: “This has been a challenging period for the housebuilding industry with significant headwinds having a combined effect, which largely offset the excellent growth that we achieved in private housing. The UK government’s mini-budget in September reduced the confidence of homebuyers and the cost of mortgages increased significantly. Our affordable housing business was greatly impacted by build cost inflation and, with the Scottish Government still to review its affordable housing investment benchmark, it is not currently possible to continue building affordable homes at the same pace as we have in the past.

“Our plans to deliver additional homes for families through PRS [private rented sector] were unfortunately withdrawn as a result of the Scottish Government’s intervention in rent control. Plus, while one land sale to a housebuilder was achieved, the industry-wide stalling of land purchases meant that we could not secure acceptable value for additional sales.”

He added: “We are encouraged by the signs that market conditions are improving. While it is too early to call a recovery, the green shoots we are experiencing and which are being seen across the industry, through increased reservations and visitor levels, are encouraging. The foundations of Springfield remain strong.”