The land with planning consent spans across six sites, primarily in central Scotland.

The sale will complete by 31st May 2025, with proceeds received in four tranches over the next four years.

“This profitable land sale will enable us to realise the value of our assets, accelerate our plans to remove bank debt and focus on the significant opportunity in the North of Scotland where we are uniquely positioned to excel,” said Innes Smith, CEO at Springfield.

As a result of the land sale, Springfield expects to report profit for FY 2025 significantly ahead of market expectations.

Following the sale, Springfield will continue to have a large land bank, providing over nine years of activity, and will continue to operate in central Scotland, including delivering homes at the Bertha Park and Dykes of Gray villages.

“New housing is required to cater for the thousands of workers needed to deliver the substantial green infrastructure development coming to the region and the ongoing population growth as result of the economic stimulus these projects will bring,” added Innes.

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“With significant land holdings across the Highlands and Moray and an established presence, we are excellently positioned to capitalise on this opportunity.”

In addition, Springfield and Barratt have entered into non-binding discussions regarding the possible sale of additional future land holdings on a number of other sites.

According to Springfield’s H1 2025 (six months to 30th November 2024) interim results, the housebuilder saw 361 total completions and a reduction in net bank debt from £93.4m to £62.9m.

In total, the group owns a land bank of 5,797 plots, 90% of which with planning permission.

Some 6,305 plots are under contract.

From mid-December, the housebuilder’s private housing reservation rate dropped, reflecting the subdued economy.

However, Springfield is currently experiencing signs of “increased confidence” following interest rate cuts.

“While we are disappointed that some of our affordable housing projects were delayed due to uncertainty over availability of public funding, we are encouraged by the increase in activity in this area following the Scottish Budget in December,” commented Innes.