Springfield Properties signs new £6.1m affordable housing contract

Springfield said the design and build phase of the contract was due to begin "in the coming weeks" and will be delivered over a period of around 18 months, with the group receiving payment on a monthly basis.

The AIM-listed firm said it has "an excellent" track record of affordable housing delivery spanning over two decades and has established relationships with housing associations, local authorities, and other public bodies throughout Scotland.

Springfield highlighted its intention to engage with affordable housing providers following an increase in the Scottish Government's affordable housing investment benchmarks in June, stating it was "well-placed to benefit from a return in this market", supported by "strong fundamentals", including a Scottish Government target to deliver 110,000 new affordable homes by 2032.

Chief executive Innes Smith 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 circa £24.0m and we expect to be awarded further contracts in the near term."

As of 1055 GMT, Springfield shares were up 6.67% at 56.0p.

Reporting by Iain Gilbert at Sharecast.com