‘Milestone’ deal will see 300 homes built for workers upgrading Scotland’s power grid

In a unique industry tie-up, Springfield Properties said it had signed an initial agreement with Scottish Hydro Electric Transmission - part of energy giant SSE - to deliver 293 homes, at six sites across Highland, Moray and Aberdeenshire. The properties will be leased for an initial four-year period to accommodate workers involved in the company’s major energy upgrade projects.

It is expected that the homes will be delivered by Springfield on a phased basis over the next three years.

At the conclusion of the lease period, the housebuilder said it would have “multiple attractive options”, including making the properties available for private housing sales, sales to private rented sector providers or to affordable housing specialists.

The firm is looking to capitalise on green energy growth in its core North-east market after sealing a milestone £64.2 million deal earlier this year with industry major Barratt Redrow. That agreement saw Springfield offload 2,480 plots of undeveloped land with planning consent across six sites, primarily in central Scotland.

The group said it was continuing to discuss further agreements with SSEN Transmission and other major infrastructure providers to deliver new housing on a similar basis to support the upgrade of “crucial” energy infrastructure in the north of Scotland.

Springfield chief executive Innes Smith said: “The build and multi-year lease of housing will allow us to receive income over the course of the lease as well as having additional attractive options at the conclusion of the lease period. We are continuing to discuss further projects with SSEN Transmission and other infrastructure providers, and we remain very excited about the substantial opportunities in the north of Scotland.”

Rob McDonald, managing director of SSEN Transmission, added: “This agreement with Springfield represents a milestone in our housing legacy commitment. It’s more than just bricks and mortar - it’s about creating long-lasting value for communities, providing much-needed homes, and supporting the workforce delivering vital grid upgrades.

“Alongside our other housing agreements, we are proud to be working in partnership with Springfield to deliver homes that will benefit local people for decades to come.”

News of the agreement came as Springfield said trading for the six months to the end of November had been in line with management expectations. The group expects to report first-half revenue in the region of £106m, mirroring the previous year, and net bank debt of about £40m, down from £62.9m at the end of November 2024. Its interim results announcement is scheduled for February.

Smith told investors: “We are pleased to have performed in line with our expectations for the first half, including a significant reduction in bank debt compared with this time last year. In private housing, we are hopeful that an increase in consumer confidence following the publication of the UK Budget, along with expected interest rate cuts, will provide a boost to homebuying in the 2026.

“We are continuing to perform well in affordable housing, with almost all of our [full-year] forecast revenue already delivered or contracted.”